Steel profile buyers have heard about attempts to raise prices in Germany and neighboring markets, but do not expect major changes in the future. Prices for varieties ,
,They have hardly changed this summer, and for most of the weeks they barely exceeded 820 euros per ton (US$933 per ton) for category 1 delivery. Last week it became known that ArcelorMittal is seeking to increase the price by 25 euros per ton throughout Europe. This was first reported in Italy and France, but this attempt has been confirmed in Germany, where the figure is plus 30 euros per ton, according to Callanish from one source. Manager
One northern believes that such a statement should be easily accepted by local German manufacturers, which ArcelorMittal does not belong to, although its Luxembourg plant is an important player. "If a gas station in the city center raises gasoline prices, then those located closer to the highway will not fluctuate for long," he says.
He adds that he would not buy at the price levels of 820-830 euros per ton, which have prevailed for some time. He notes that the prices offered by downstream consumers are too low to be able to make replacement purchases at factories at current prices and still remain profitable. This casts doubt on the effectiveness of factory price increases.The weakness in sales is confirmed by a buyer from a larger distribution group. They note that the distributors' cheap offers mainly come from stocks purchased before the price exceeded 830 euros per ton in May.
"You really need to draw a line here. New material cannot be sold at a reasonable profit, but many distributors are willing to discount materials available in stock to keep cash flowing."
Due to the announcement of a price increase, they do not see much chance of 25-30 euros per ton, but they do not rule out that it is possible to reach 10-15 euros per ton,"And this would be at least a small step towards stabilization," they conclude.
Author: Christian Kel Germany
kallanish.com
