Complete Steel Collection
Prices of flat products are still growing!
15. 5. 2010
Current prices from the mills for July deliveries rose by 30-50 EUR/t compared with prices in June, so the prices are 630-650 EUR/t ex-works for HRC, 730-740 EUR / t for CRC and 740-750 EUR/r for HDG.
Prices for July reported last week in Spain:
- HRC 650 EUR / t
- CRC 730 € / t
- HDG 740 EUR / t.
Spanish wholesalers say that the mills may try to raise the prices, but customers do not need so much material in July, as they needed in last months.
On the Spanish market are the purchase prices for the June deliveries as followed:
- HRC 600 EUR / t
- CRC 690 EUR / t
- HDG for 700 EUR / t.
"The market is not as tight as it was some time ago and it is now easier to obtain materials from China and third countries for September and October," the source said.
In Germany the market is waiting for official notification from the mill price increases for flat products.
Prices for June in Germany:
- HRC 600 EUR / t
- CRC 690 EUR / t
- HDG 700 EUR / t
(These prices are for contracts already closed)
The new prices in Germany are likely to reach the following levels:
- HRC 650 EUR / t
- CRC 730 € / t
- HDG 800 EUR / t
For this reason, stockists and service centers are considering enhancements of 40-60 EUR/t for the period June / July.
“In May the sales price, including delivery to customer, will go up," said one shareholder. "Currently, our offer price is 750 EUR / t for HRC, 800 EUR / t for CRC and 900 EUR / t HDG."
Whether it's just a verbal fight between German sellers, or it is a reflection of the done deals, is difficult to estimate. Demand from the German shipyard and shipbuilding industries, is better than 2009 but still remains low.
European demand has improved mainly due to improved activity in the Czech Republic and Poland, customers are re-exporting to the USA and Canada.
"Wholesalers are keeping low stocks and increasing prices on a regular basis, because there is no other way to make money," said German wholesaler. " The next mill increase after this latest one is likely to be around €100/t for August delivery, making a mill price of around €750/t for HRC, and an outsell price of €850/t. This won't be easy for our customers but it's a reality.”
Whether it's just a verbal fight between German sellers, or it is a reflection of the done deals, is difficult to estimate. Demand from the German shipyard and shipbuilding industries, is better than 2009 but still remains low.
European demand has improved mainly due to improved activity in the Czech Republic and Poland, customers are re-exporting to the USA and Canada.
"Wholesalers are keeping low stocks and increasing prices on a regular basis, because there is no other way to make money," said German wholesaler. " The next mill increase after this latest one is likely to be around €100/t for August delivery, making a mill price of around €750/t for HRC, and an outsell price of €850/t. This won't be easy for our customers but it's a reality.”
Whether the different economic situation between the northern and southern Europe reflects a contradiction in selling prices in Germany and Spain, or whether is Germany getting ahead of itself, is a question that can only be answered in the coming months.
