Players from Northwestern Europe believe that a reliable picture of the price dynamics of coils will appear no earlier than September.
Despite the fact that many countries are still on vacation, August did not bring any price increases or decreases, given the limited market activity.
At least one factory has stopped sending out offers altogether, and others have apparently followed suit, buyers say. Buyers expect factories to return at the end of the month with new prices. Service Center Manager
A in Benelux reports that at the beginning of the month, orders for hot-rolled coils were received at a price of 720-735 euros per ton (840-857 US dollars per ton). He notes that during this time there have been offers at prices up to 750 euros per ton, but rejects them as unacceptable.
Even the lower level of 740 euros per ton, set by the market leader in July, is considered unattainable by some buyers.
"You have to be brave to pay that price," a German customer tells Callanish. That would mean adding 20 euros per ton to his selling prices, which his customers would not agree to. "The market is just too weak for that," he adds. Prices
The prices for cold-rolled and hot-dip galvanized coils do not differ from the prices for HRC with a premium of 100 euros per ton.
"It is noteworthy that the price for HDG is again almost the same as for CRC," says a Dutch buyer of construction materials, estimating both options at 820-835 euros per tonne delivered.
He expects that the plants will try to raise the price by 25-30 euros per ton, but sees little chance that this will be accepted in a calm market. In Germany, where about half of the population is still on school holidays, no changes are expected until mid-September.
Given the lack of competition from imports, buyers also do not expect lower prices, but warn manufacturers against overexerting themselves.
"If the factories set the price too high, they may end up selling for less than they promised, and this will be a bad signal for the market," says a German buyer.
Author: Christian Kel Germany
kallanish.com
