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Update on steel price scenario an trends in Europe- 22 Feb 11

It is reported that steel prices are still slightly increasing for flats in Europe while longs are still struggling among difficulties mainly due to low consumption level.
Many distributors and SSC have experienced during last week a significant decrease of sales, which in some cases is reaching 10% to 15%. 
After the "bonanza" of January when distributors and SSC could pass on to end users the price increases for materials bought at November 2010 prices and thus enjoying extremely good spreads, now the situation is drastically changed.
Stocks of cheap materials have substantially decreased but consumption is remaining at low levels. Prices are EUR 100 per tonne to EUR 130 per tonne higher than those in November 2010. All these factors are keeping distributors and SSC away from booking important orders, trying to "take time" to better understand future trends, by booking with local Mills only the strictly necessary for the day by day.
On the other hand, price situation between local and import is well balanced being import prices at levels basically equivalent to the domestic ones and thus not disturbing the market structure. 
Also the different speed of the Far east economies, including China that although some recent signs of slow down is remaining at levels absolutely unachievable for EU countries, is helping in keeping away big quantities and making longer the delivery times, the last one being an important obstacle to bookings.

(Source: www.steelguru.com )

Feb 22, 2011 16:00
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