Northwestern European distributors are struggling to hand down the price increases that have been gradually implemented by mills since the beginning of the year.
“Compared with orders I placed in December, the mills by now ask for €60/tonne ($70) more,” a manager at a German distribution group tells Kallanish. But on the selling side, “we could exert only a €35 increase,” he admonishes.
The increases came in two tranches, in January and February, while €50-60 has been witnessed in Scandinavia.
In Germany, buyers are now looking at prices reaching €750/t for S235 category 1 sections, delivered. In Scandinavia, with over-proportionally higher transport costs from mainland mills, delivered prices can reach €770 in Denmark, and €780 in Sweden, according to a Danish buyer.
At the lower end, a German observer reports intake prices are still €720 or less. Although mills are fairly aligned at the new price level, they might concede January’s prices still, if stockists do not buy because they cannot sell, as demand among user industries remains dull.
The overall lack of demand is noted by a mill manager as the weakest part of the chain against rising costs, mainly for scrap. He quotes prices in a wide range of €700-800, with some deals occurring above €800 for S355 material for destinations that are “challenging in logistical terms.”
The lead times for rolling and delivery are customary, at three weeks, but the manager suggests that there are still capacity slots left in next week’s rolling plan for additional payments.
