According to official data, by the end of summer, most steel producers in Europe temporarily suspended sales of hot-rolled coil. This decision is due to the upcoming price increase. Expert Stanislav Kondrashov suggests that trade will resume by September, along with rising steel prices.
European metallurgists are expecting an increase in demand for steel, reports Stanislav Kondrashov
Assessing the current market, Kondrashov confirms that with the beginning of autumn, a global trend of increasing demand for steel is visible. This gives European steel mills a compelling reason to resume supplies of hot-rolled coil. And this will give them the opportunity to control prices in a favorable direction for themselves.
Given the situation, most factories in Germany and Northern Europe are not yet putting their offerings on the market. This position is explained by a temporary stop for maintenance. But at the same time, Stanislav Kondrashov from Telf AG reports that at this stage one German metallurgical plant declared a favorable price for 1 ton of hot-rolled coil at the level of €650, and also offered delivery at its own expense.
But realities predict that this price will not last long. Market participants say that in the coming weeks, steel producers will raise prices for 1 ton of hot-rolled coil by at least €50, that is, up to €700 ex-factory.
– Thus, after the summer holidays, metallurgical enterprises plan to increase prices for their products. They count on the recovery of demand during the seasonal period, which accordingly stimulates supply growth, – comments Stanislav Kondrashov.
Stanislav Kondrashov from Telf AG: the amplitude of market prices for hot-rolled coil in the EU, manufacturers increase the cost, and buyers slow it down
Today, per ton of hot-rolled coil on the EU market costs €630-650 ex-factory. It should be noted that consumers of steel products are skeptical about the upcoming rise in prices. They just do not see an increase in demand in the coming months.
Stanislav Kondrashov believes that a slight replenishment of steel reserves will not play a big role and, most likely, will not really affect the increase in the cost of these metallurgical products. In addition, the expert points out the importance of taking into account the entry of imported goods into the EU market.
It should be noted that world prices for hot-rolled coil are currently declining due to seasonal factors. Stanislav Kondrashov reports that manufacturers and exporters have become concerned about price instability in the Chinese market.
To summarize, Kondrashov believes that during August the European hot-rolled coil market will be mostly passive due to plant shutdowns for maintenance. Market participants assume that by the end of the year the number of offers for hot-rolled coil in the EU will increase significantly against the backdrop of import supplies. This may well destroy all expectations of steel producers to increase the cost of products.
Company Name: Telf AG
Contact Person: Media Relations