Variety plants in Northwestern Europe are trying to raise prices at the beginning of the year, although observers do not believe that this increase is due to sufficient market demand.
At the end of December, prices for category 1 long products from domestic plants apparently reached 730 euros per ton (860 US dollars per ton), while transactions rarely increased, more often decreased. The price change in January corresponds to ArcelorMittal's statements that the company intends to raise prices for long products by 20-30 euros per ton.
According to the manager of the central German distributor, mills has announced a price increase of 20 euros per ton and can successfully implement them.
"We had to replenish our stocks due to seasonal depletion at the end of the year in order to be able to service incoming orders," a distribution source tells Callanishou, naming the current price of 750 euros per ton, which he accepts.
The distributor adds that the factories are relatively well loaded in February and that fast orders cannot be completed within a few days, as is usually the case. He had heard that one mill in Luxembourg was not yet operating at the required capacity after maintenance/repair activities, which was beneficial to other sectional mills.
One manager from Northern Germany says that there are still volumes at December prices, but in this case he is talking about an earlier level of 750 euros per ton, which may be caused by higher transportation costs. He now estimates this level at 770 euros per ton.
Another shutdown is also expected in other regions of Germany, as factories intend to continue raising prices despite low market demand. Sources at the plants claim that with the current cost structure, the price should be 770 euros per ton (see separate article).
Author: Christian Kel Germany
Kallanish.com
