New European thick-sheet plants are trying to increase
Sheet metal suppliers in Northwestern Europe are trying to make July a turning point in prices, which have been declining since April.
"Now I see offers that are a little higher than before," a Belgian buyer tells Callanish. The offers are apparently 20 euros per ton ($23 per ton) higher than previous quotations and are an echo of attempts to raise prices for the roll, which became known a week earlier.
The higher quotes are confirmed by a source at the plant, who notes that the summer lull is prolonged. This is a good time to prepare clients for the business renewal period. "It's better to start probing the ground at a time when important decisions are not being made," he says.
This year, the summer lull is in addition to the monthly reservation of places in the tablet market for investments and purchases, which means that it will take weeks before transactions are completed to determine whether and to what extent price increases are acceptable.
"Business recovery may well take until the end of August," predicts a source at the plant.
Recently, the profitability of the S355 in northwestern Europe has been about 670 euros per ton ($774) supplied by domestic plants.
Factories in Italy have also announced price increases.
According to one observer, buyers from Southern Germany expected a price of about 700 euros per ton. The main cost factor here is transport prices, which have risen sharply, says the observer. "Transport prices are rising rapidly. If you want to make a correct calculation, you need to add 65 euros per ton right now."
Christian Kel Germany
Kallanish.com