A number of factories in northwestern Europe that withdrew from the market last week seem to have returned with new price offers that are only valid for one day.
Last week, many factories stopped making offers, "obviously to figure out for themselves how much they can ask next time," one of the German managers tells Callanish.
He suggests that the next target price for medium S235JR category 1 shipments with delivery will be 800 euros per ton ($932), which has also been suggested by other observers.
Now these expectations have been fulfilled, and several plants have chosen a gross offer price of 800 euros per ton, for which individual discounts can still be provided depending on the transaction, says the buyer of large volumes.
He notes that such offers are valid for only one day. "We haven't bought at this price yet," he says, considering it realistic. If the offers are not accepted during the day, there is a possibility that the next price will be higher, he believes.
Although this applies to plants in northwestern Europe, he notes that cheaper deals can still be concluded with Spanish or Polish plants, at about 770 euros per ton. But he also notes the firm determination of the northern factories to maintain the new price level.
Another German manager confirms the assessment and points out the psychological element that accompanies such statements.
He notes that the supply level of if should be stable if it starts from 800 euros per ton. "If they return to the 700 euro mark, all efforts may go to waste."
.Meanwhile, ArcelorMittal and British Steel have sent out official announcements to their UK customers about price increases of 50 pounds per ton ($67 per ton) and 60 pounds per ton, respectively. This roughly corresponds to the increase reported by continental sources of 50-70 euros per ton, depending on previous levels.
.Author: Christian Kel Germany
Kallanish.com
