Reports of a new roll price increase of 50 euros per ton ($59) by the market leader have not yet reached some market participants in Northwestern Europe, but sources expected an increase after factories went silent last week.
Last week, various buyers informed Kallanish that some factories had withdrawn from the market after collecting enough orders and were not providing new quotes or responding to inquiries. "They know the rules of the game, and they change every day," one of them said. However, this tactic does not cause concern to buyers, as demand remains weak and they are in no hurry to make purchases.
"Mills played a bit of stop-and-go to check the market for the real price they could ask for and avoid rates that were too low," one buyer said.
The target of 700 euros per ton ($828) of hot-rolled roll, set by the market leader, has not yet been reached during the transactions, and yet, according to some sources, this supplier is now offering a price of 750 euros (see separate article).
However, "since we[transactions]were approaching the previously set 700 euros, it makes sense to request even more at an early stage," says one German manager. He notes that he himself has not heard about the latest promotion either directly or from others. But, "knowing how things are, just this morning I assumed that something like this would happen in the near future."
So far, German market participants believe that the upper price range for HRC is about 670 euros per ton, and in the Benelux countries - 680 euros. When some plants had previously left the market, they intended to return soon with a new offer. According to the Dutch manager, this amount should have been 700 euros, and according to a German source - even less. None of them expected that the price would be 750 euros per ton.
.However, this will not mean a sudden jump, "but a gradual change in the price level," says the Dutchman. He expects that the validity period of the offer will be shortened, discounts will be reduced, and delivery times will be extended, since the travel schedule will be well scheduled.
Author: Christian Kel Germany
Kallanish.com
