After the notable price increases successfully implemented by factories, the wave of purchases seen in February seems to have slowed somewhat.
The plants finally succeeded by increasing the price by 70 euros/ton (83 USD/ton) to the cost of the delivered S355 of 800 euros/ton, which was previously announced in January in vain.
Meanwhile, the new price level has been adopted as imports are no longer seen as a realistic alternative, and the incalculable CBAM fees are likely absorbing the price advantage, German buyers note.
According to one customer, distributors of rolled steel products in the Benelux have now been deprived of their ideal supplier, given their proximity to major ports, and have instead increased their orders at European plants.
This helped fill out the purchase order portfolios earlier than May."The market has turned around a bit," he says.
In fact, some plants are now considering 850 euros per ton as their next target.
Another buyer believes that the accepted price will move forward in the absence of alternative offers."Importing is not an option, so we have fewer procurement channels now," he notes.
A source at one factory doubts the possibility of achieving higher prices and is skeptical about whether the recent growth will be sustainable.
He confirms the price of 800 euros/ton, but also notes recent deals for 50 euros/ton cheaper.
He adds that at the end of February, the influx of orders had already subsided.
He warns that pushing for another price step is sure to scare buyers."If I ask for 850 euros per ton, the buyers will hang up on me. It's close to the distributors' prices, so customers can buy there," he tells Callanish.
