The reality of the Northern European plate market is not amenable to higher prices
Sheet metal mills
In Northwestern Europe, they are striving to raise prices in the future, although the prospects for implementing this in the current market are unclear.
"We are negotiating for the third quarter, and the plants are asking for 60 euros/ton ($70) more compared to the previous quarter," one of the market sources told Kallanish. Like other companies that have noted an increase in spot prices in recent weeks, he believes that the plant's target will reach 900 euros per ton with the delivery of the S355. He doubts that this amount will be reached in full during the negotiations, "but, of course, it will amount to at least 30 euros per ton."
Thanks to the project contracts, German factories are well-loaded and, therefore, can afford to set higher prices. These plants are licensed to implement projects, for example, by the railway operator Deutsche Bahn, "which are more profitable, but also require more time for certification," explains one of the managers.
According to many players, the German mills will be used until the end of the year, and some special grades will only be available from the New Year. In addition, according to the manager, a break in the repair of a blast furnace at one of the plants and problems with water transport led to an increase in the delivery time of high-quality rolled products. Thus, according to observers, a complete price increase for integrated plants may be feasible for high-end products that are in demand, but not for rolled products.
"Hardly anyone wants to pay 900 euros per ton," one of the managers notes. He warns that "the next two weeks should show whether demand will be met, otherwise we may face a negative reaction."
Author: Christian Kel Germany
kallanish.com