Northwestern European sections mills are attempting to exert price increases for the beginning of the year, although observers do not see the rise substantiated by sufficient market demand.
At the end of December, prices for category 1 sections from domestic mills appeared to reach €730/tonne ($860/t) delivered, with transactions rarely going higher, more often lower. January’s price move is in line with announcements heard earlier from ArcelorMittal that it aims to bring up prices for long products by €20-30/t.
According to a manager at a central German distributor, mills announced €20/t hikes and could successfully implement them.
“We had to replenish our stocks from the seasonal depletion at year-end, to be able to serve incoming orders,” that distribution source tells Kallanish, giving €750/t as the current price mark he accepts.
The distributor adds that mills are relatively well utilised for February, and that quick orders cannot be served in a matter of days, as is traditionally sometimes the case. He heard that one Luxembourg mill, after maintenance/repair measures, does not quite work to the desired capacity yet, to the benefit of other sections mills.
One northern German manager says there are still volumes left at December’s prices, but in this case he talks about an earlier level of €750/t, possibly caused by higher transport costs. The level now he sees at €770/t.
Elsewhere in Germany that next stop is anticipated, too, as mills are ambitious to boost prices further, but against and in spite of low market demand. Mill sources state that €770/t should be the price level to cope with the current cost structure (see separate article).
