Coil buyers in northwestern Europe confirm that ArcelorMittal this month launched another attempt to increase coil prices, but they do not expect that they will cause a leap forward on the market.
Essentially, steelmakers are trying to bring the price for hot-rolled coil over the mark of €600/t ($628) ex-works. They do achieve it at times, Kallanish hears, but prices below that for transactions still occur in Germany and Benelux. Scandinavian prices tend to be clearly above that level.
ArcelorMittal now asks for €20-30/t more for delivery in the second quarter, nominally aiming towards €650/t. Similar moves are heard from other mills, with one German mill asking for even €50/t more, according to a trader who says he has not replied with a bid on that yet.
One Swiss-based trader says he does not see much potential for new prices to pass through, citing high stocks at service centres and some capacities reopening in Italy and eastern Europe.
“Our customers are very reserved with buying, which is frustrating for the mills as they cannot make long-term plans,” a French-based trader concurs.
A German buyer finds that prices are definitely strengthening, largely because of potential EU measures against imports. But still, “demand is not growing much, so price increases will not be dramatic,” he comments. “It remains to be seen how the mood on the market is developing, especially in Germany after the elections, and if measures against imports are successful. Then we might be able to tell if there is headroom for more price hikes – or if we fall back into a grey stagnation.”
Christian Koehl Germany
