Distributors in Northwestern Europe are having a hard time coping with the price increases that have been gradually occurring at factories since the beginning of the year.
"Compared to the orders I placed in December, the factories are now asking for 60 euros ($70) more per ton," says Callanishou, manager of the German distribution group. But as for sales, "we could only increase them by 35 euros," he warns
.The increase occurred in two tranches, in January and February, while in Scandinavia it amounted to 50-60 euros.
In Germany, buyers are now expecting prices for the supplied S235 category 1 sections to reach 750 euros per ton. In Scandinavia, with disproportionately higher shipping costs from factories on the mainland, shipping prices can reach 770 euros in Denmark and 780 euros in Sweden, according to a Danish buyer.
A German columnist reports that entrance ticket prices are still 720 euros or less. Despite the fact that factories generally adhere to the new price level, they can still lower January prices if stockbrokers do not buy because they will not be able to sell, as demand among consumers remains low.
The plant's manager notes the general lack of demand as the weakest link in the chain, hindering rising costs, mainly for scrap metal. He cites prices in a wide range from 700 to 800 euros, while some offers for S355 materials exceed 800 euros for destinations that are "difficult from the point of view of logistics."
The order completion and delivery times are usually three weeks, but the manager assumes that there are still free places for additional payments in the plan for the next week.
Author: Christian Kel Germany
Kallanish.com
