Following a notable price surge successfully implemented by mills, the purchasing wave seen throughout February appears to have slowed somewhat.
Mills finally succeeded with an increase of up to €70/tonne ($83/t) to the value of €800/t for S355 delivered, which had previously been announced in January in vain. Meanwhile, the new price level has been accepted as imports are no longer seen as a realistic alternative, with incalculable CBAM fees likely absorbing the price advantage, German buyers note.
According to one buyer, plate distributors in Benelux are now bereft of their ideal supplier, given their proximity to the big ports, and have instead boosted their orders at European mills. This has helped to fill order books for delivery sooner than May. “The market has turned around quite a bit,” he says.
In fact, some mills are now eyeing €850/t as the next target. Another buyer sees the price accepted going forward amid a lack of alternative offers. “Imports are not an option, so we have fewer purchasing channels now,” he notes.
One mill source questions the possibility of achieving higher prices, and is sceptical if the recent rises are sustainable. He does confirm the price tag of €800/t, but also notes recent deals at €50/t less. He adds that the run on orders has already calmed down at the end of February.
He warns that the striving for another price step will be sure to have customers scared. “If I ask for €850/t, customers will hang up. That’s close to the distributors’ prices, so customers might as well buy there,” he tells Kallanish.
