Prices for HRC in North-Western Europe have stopped
Factories in Northern Europe are struggling to raise prices for rolled products higher than they have been for the past few weeks.
The target prices for hot-rolled coils, named by the market leader in March at 680 euros per ton ($764), did not become standard for transactions, let alone the next target set in April at 700 euros per ton. "I haven't talked to anyone who would pay one price or another," says a well-connected service center manager in West Germany. Like many others, he believes that the standard price has been at 650 euros per ton for many weeks, but admits that small batches may well be sold at 670 euros per ton.
According to him, ArcelorMittal currently offers the highest prices, followed by Tata Steel and thyssenkrupp. "I feel that the upward trend in prices has slowed down a bit," he adds. This point of view is shared by a buyer from southern Germany. "Factories are building up prices in small pieces, but it seems that Zenit has exhausted its resources, and products should not exceed their goals," he notes.
He points to ongoing negotiations on quarterly contracts with some industries, including the automotive industry. "Now automakers and suppliers tend to agree on shorter terms[contract]," he notes. As a buyer of hot-rolled sheet, he is currently paying 740 euros per ton. This includes 50 euros for cutting and 40 euros for transportation, which corresponds to a roll price of 650 euros per ton. "Maybe 10-20 euros more, but it will be the maximum," the buyer from Southern Germany continues
However, the service center manager notes that summer is just around the corner, "and it is at this time that business slows down." Anyway ".
Christian Kel Germany
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