Week 48 has seen a progressive strengthening of a generalized price increase trend.
Although demand is remaining still very soft and consumption at quite low levels, prices have enjoyed the relatively scarce availability from neighboring countries and Mills.
As a matter of fact and since the beginning of present crisis period, the main price decision makers of principal EU markets (Germany, Spain and Italy) have been the East European and CIS Steel Mills. Now a days many of them and particularly the three big Russian Steel complex (Severstal, Novolipetsk, Magnetogorsk) have declared to be fully booked till Jan / Feb and in some cases such as NLMK, till March 2010. Of course these declarations are mainly meant to create a sentiment of general uncertainty and anxiety all over the markets to justify possible further price increases, however up to a certain extent they are definitely reflecting a real situation.
As such, the logic consequence should be that we are finally going toward an established and consistent period of positive trend.
The present relative shortage is mainly due to the reduced production level common to all above mentioned steel Mills and generally to all EU steel Industrial sector. If and when the Mills, tempted by better and higher prices, should eventually decide to increase their output, we will once again see to a new pricing dumping as the "mantra" of this crisis was and remains the lack of demand determined by the low consumption levels.
Only when the economic, fiscal and financial stimulus offered by the different EU governments will start to have some concrete effects, we could reasonably discuss about a new positive trend of steel consumption. This is some thing that we might be able to see only during late 1st quarter 2010, unless of sudden production acceleration of the Producers.
1. Plates - Mellowed sentiments
HRP
S 235 / S275JR
5-20x2000
| Country | Domestic | Import |
| Germany | 0 | 0 |
| Spain | 0 | 5 |
| Italy | 0 | 0 |
Change is on November 27th as compared to November 20th 2009
In EUR per tonne
2. Hot Rolled Coils - Buoyant sentiments
HRC
S235JR
2-12x1000-1500
| Country | Domestic | Import |
| Germany | 0 | 0 |
| Spain | 5 | 0 |
| Italy | 5 | 15 |
Change is on November 27th as compared to November 20th 2009
In EUR per tonne
3. Cold Rolled coils - Unchanged
CRC
DC 01
0.60 Avx1250
| Country | Domestic | Import |
| Germany | 10 | 0 |
| Spain | 0 | 0 |
| Italy | 0 | 0 |
Change is on November 27th as compared to November 20th 2009
In EUR per tonne
4. Hot Dipped Galvanized - Demand improves pre holidays
HDG
DX 51 D / Z100-120 / AS
0.55 - 0.57x AW
| Country | Domestic | Import |
| Germany | 5 | 10 |
| Spain | 0 | 5 |
| Italy | 10 | 5 |
Change is on November 27th as compared to November 20th 2009
In EUR per tonne
5. CFR Antwerp- HDG shows the way ahead
| Product | Grade | Thick mm | Change |
| HRP | S235JR | 10-60x2500 | 0 |
| HRP | S355J2+N | 10-60x2500 | -10 |
| HRC | S235JR | 2-12x1250 | 5 |
| CRC | DC 01 | 0.60 Avx1250 | 0 |
| HDG | DX 51 D/Z 180/NA-C | 0.60 Avx1250 | 10 |
Change is on November 27th as compared to November 20th 2009
In EUR per tonne
All prices are net to the final customer with following payment terms
A. Italy & Spain
1. Domestic prices are EXW or DDP with payment 90 days from delivery
2. Import prices are CIF FO with LC at 90 days from B/L date
B. Germany
1. Domestic prices are EXW or DDP with payment on the 15th of the following month
2. Import prices are CFR FO with open term payment at 30 days from date of arrival
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(Sourced from www.steelprices-europe.com)
