Plate suppliers in northwestern Europe are trying to make July the turning point for prices, which have been softening since April.
“I do see offers now that are slightly higher than before,” a Belgian buyer tells Kallanish. The offers appear to be €20/tonne ($23/t) above previous quotations and come as an echo to the hike attempts for coil, which were made public a week earlier.
The higher quotes are confirmed by a mill source, who notes that the summer lull is a good time to get customers prepared for the period when business resumes. “It is better to start testing the waters at a time when no big decisions are being made,” he says.
This year’s summer lull comes in addition to the month-long reservation on the plate market to make investments and purchases, meaning it will take weeks before transactions show if and to what extent hikes are accepted.
“The comeback of business might well take until the end of August,” the mill source predicts.
The bottom line for S355 in northwestern Europe has lately been at around €670/t ($774) delivered by domestic mills.
Mills in Italy have also announced increases.
According to one observer, southern German buyers would be looking at close to €700/t delivered. The main cost factor here are transport prices, which have gone up sharply, the observer says. “The transport prices are running away on us. If you want to make a proper calculation, you need to add €65/t now.”
Christian Koehl Germany
