Complete Steel Collection
The European plate market is reflected from the bottom
3. 8. 2009
According to information from the rolling mills and traders the spot prices and demand for European heavy plates have moved up in July, after reaching the bottom in May and June.
"Although demand is still very low, it shows a slight increase in demands and in orders," said one of the north European producers. "Mills produce 50% of capacity, destocking is probably already over and distributors are buying again to a limited extend in some grades and sizes. “
"Although demand is still very low, it shows a slight increase in demands and in orders," said one of the north European producers. "Mills produce 50% of capacity, destocking is probably already over and distributors are buying again to a limited extend in some grades and sizes. “
"Some sales have been at very low prices (€ 350-400 / t), but this was not representative of the market for even basic grades or dimensions for the new orders for projects," said trader.
The price € 490-500 / t for Northern Europe is higher than the € 400-430 / t level quoted by several market sources. One source says that prices had risen by € 10/t in July to around € 415 / t.
"There is a wide range of prices of basic grades, but the trend is definitely up," said one source. "It now looks as if prices are reflected from the bottom in the 2nd quarter, but they did so at very low levels."
One source says that the mills are under pressure due to the increase in the prices of slab. With slab $ 410-420/t fob Black Sea, European rerollers need more than € 430 / t ($ 610 / t) for their plates, says source.
If the price of slab increase this summer, as expected, the additional pressure on plate price increases, says a source from the rolling mills.
One trader said that the plate prices in July were unusually close to the prices of hot rolled cil, currently around € 410 / t on the German spot market.
Steep falls
In Germany prices dropped sharply from an average level of around € 735 / t in the 4th Quarter last year.
Industrial source blamed rolling mills for in the first quarter in order to keep market share "Great discounts of the rolling mills resulted in a considerable fall in prices," says a source.
Demand for heavy plate in Western Europe reached a low level of 2.46mt in 1st quarter, compared 4mt last year and is expected to rise gradually until the end of 2009.
Steep falls
In Germany prices dropped sharply from an average level of around € 735 / t in the 4th Quarter last year.
Industrial source blamed rolling mills for in the first quarter in order to keep market share "Great discounts of the rolling mills resulted in a considerable fall in prices," says a source.
Demand for heavy plate in Western Europe reached a low level of 2.46mt in 1st quarter, compared 4mt last year and is expected to rise gradually until the end of 2009.
