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| Monday Market Monitor - EU - WEEK 11 - Unprecedented revival - 22 Mar, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Last week have seen further substantial price increases on all products in Europe with producers pushing down heavily on throttle and placing increases of 5% to 10% in just one week. As a consequence, demand is reviving as buyers can't find any competitive alternative and thus are all running to book in order to avoid next expected and already announced further increases. However it is clear to everybody that this is just an apparent consumption as the real level is still remaining sluggish and improvements are seldom, erratic and quite weak. Long products have been, more than all others, those that have placed the most sensational price increases as basis price for merchant bars, de bars and sections has gone from a mere EUR 120 per tonne to EUR 150 per tonne of 3 weeks ago to now a days EUR 280 per tonne to EUR 300 per tonne basis EXW. It's going without saying that this is the nominal price request. Real transactions are said to be booked at levels around EUR 200 per tonne to EUR 240 per tonne basis EXW, depending on customer importance and order convenience. Although astonishing, price increases have been well expected as an obvious consequence of scrap and semis scarcity linked with parallel price rebound. With billets being sold at prices of USD 570 per tonne CFR FO (About EUR 420 per tonne CFR FO), de bars and merchant bars re rollers have been left with only two alternatives: either to stop production or trying to proportionally increase prices of their output. However, the situation is still bound to change in short time as production capacity is still much higher than actual sales and consumption. Spain has an installed capacity of about 6 millions tonnes of longs with an actual market absorbing 1.5 million tonnes to maximum 2 million tonnes, while Italy is in a slightly better situation but still with a capacity of about 5 million tonnes vs. an actual sale of 3 million tonnes. Different is the situation in Germany and North Europe where longs are basically not produced, being the market historically depending on imports from Italy and Spain. In this scenario, it's really hard to understand how and where market will go during next short and medium term period. The opinion shared by many operators is that, after the present euphoria due to price increases, when main part of the customers will have bought whatever in their possibilities, prices will have to forcedly turn back. Expectations are that this will happen not later than next summer, just before holiday period. Rest to see how deep and vast will the decrease be. Most probably will not see a new "disaster" like during 2008 but certainly, due the still poor situation of the general economic situation, it will not be an easy bite to swallow. Flats are more or less on the same path with the difference that price increases have been spread during a longer period of time. Plates are those that have more than others beneficiated of the new trend being able to finally reach the EUR 500 per tonne basis EXW level. However this product was for long time and till 1 month ago the most depressed among all flat products. It is said that next target of producers is the EUR 550 per tonne to be reached not later than next April. All other products are enjoying the momentum with particular emphasis on CR and less euphoria for HDG. Mills are keep pushing and pressing for price increases with many of them holding offers and availabilities, trying to create a shortage situation. However, as soon as the already done relining of many BF's will come on stream and output will consequently increase, situation will forcedly change with expectations of price turning back before holiday period. 1. Plates HRP (E) S 235 / S275JR 5-20x2000
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 2. Hot Rolled Coils HRC (E) S235JR 2-12x1000-1500
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 3. Cold Rolled coils CRC (E) DC 01 0.60 Avx1250
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 4. Hot Dipped Galvanized HDG (E) DX 51 D / Z100-120 / AS 0.55 - 0.57x AW
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 5. Merchant bars Merchant bars (B) S235JR 5 to 150 mm
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 6. IPN / UPN IPN / UPN (B) S235JR 50 to 400 mm
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 7. HEA/B/M HEA/B/M (E) S235JR 100 to 600 mm
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 89. De-Bars De-Bars (E) FE500 6 to 40 mm
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 9. WR Mesh WR Mesh (E) S235JR 5.5 to 16 mm
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne 10. WR Drawing WR Drawing (E) SAE 1006/8 5.5 to 16 mm
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne (E) - Effective (B) - Base CFR Antwerp for flat products
Change is on March 19th 2010 as compared to March 12th 2010 In EUR per tonne To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months. (Sourced from www.steelprices-europe.com) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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