The increase in coil prices in the EU does not apply to the downstream
Market observers believe that recent announcements of higher prices for Northwestern European roll mills will not lead to higher prices for cut products.
ArcelorMittal has informed its customers from Northwestern Europe about a price increase of 20 euros per tonne ($23 per tonne), as a result of which prices rose from 720 euros per tonne to 740 euros per tonne ($848 per tonne).
It is noteworthy that the indicated shipping price includes not only transportation, but also the usual standard surcharges to the base price, which will be calculated based on the base price of about 700 euros per ton.
Some sources had previously heard about a price increase of 50 euros per ton, as was done in Italy, "but it wouldn't have worked, so they lowered the price to plus 20 euros per ton," says one of the players.
Although this lower increase may be feasible to support the prices of rolled products in Northwest Europe, some believe that processed products are unlikely to follow this step.
"Prices for rolled steel products remain low and, accordingly, will not increase," says Callanishou, a manager at a German service center. "Demand is simply not high enough to drive up prices," he says.
One buyer of strip and sheet products calls the price of this material at 760-780 euros per ton, including a cutting fee of 60-80 euros per ton. This means that the price of a raw roll is about 700 euros per ton.
The buyer adds that "service centers reduce the supply of factories".
Author: Christian Kel Germany
Kallanish.com