EU Coil Prices Face Uncertainty

Several mills have reportedly adopted ArcelorMittal’s hot-rolled coil price announcement of €820/t ($877), according to a Dutch service center buyer. According to him, delivery timeframes of now 4-5 months and growing import prices from Asia are arguments in favor of mid-term stability.

Yet, a Swiss dealer warns that imports can have the opposite effect. Low pricing up until December prompted orders from India that will come later in the spring coupled with unsold volumes that are available for the market. He contends that if purchasers are reluctant to purchase here due to the real demand still being weak, the material might be sold off, which would drive down domestic prices.

The “comeback” of blast furnaces is another aspect. A Scandinavian trade observes, “Spanish customers tell me the mills are completely booked, and of course they are, when they are operating at half their capacity. But, given the build-up of blast furnaces at least four mills, including Gijón, since January, that period should soon be over. “More material is going into the market soon,” the SSC buyer said.But, he also draws attention to one macabre component that was previously unanticipated: the earthquake in Turkey/Syria and its catastrophic effects.