Posted on 21 Feb 2023
All the while coil prices are currently climbing in northwestern Europe, some observers express doubt in the sustainability of the upward movement.
ArcelorMittal’s price announcements of €820/t ($877) for hot-rolled coil has been followed by other mills, according to a Dutch service centre buyer. One argument for mid-term stability are rising prices for imports from Asia, and delivery times of now 4-5 months, he says.
A Swiss trader, however, cautions that there could be a contrary effect with imports. The low prices until December encouraged orders from India which will arrive later in spring, along with volumes not yet pre-sold, and free for the market, he tells Kallanish. However, if buyers here are reserved because of real demand remaining shaky, that material may be sold off, and pull down domestic prices, he argues.
Another factor is the “comeback” of blast furnaces. “Spanish customers tell me the mills are fully booked, and of course they are, when they are running on half their capacity,” a Scandinavian trade points out. But that period should be over soon, given the run-up of blast furnaces of at least four mills since January, including Gijón, “with more material coming onto the market soon,” the SSC buyer says.
However, he also points at one previously unforeseen and macabre factor -- the earthquake in Turkey/Syria, and its devastating consequences. The damages of road infrastructure to Turkish mills and to the port of Iskenderun will mean more inquiries at mills in other countries, for material so far bought from Turkey, he says. He even believes that this incident encouraged northwestern European mills to go for the latest price hikes.
Source:Kallanish
