Further EU Steel Price Rises Expected [MEPS]

According to MEPS, the third quarter of the year is often regarded as an inauspicious time to attempt an increase in steel prices in Europe. Conditions can of course change abruptly when buyers go off for their summer holidays. Global market conditions certainly do however appear to be in the mills' favour, say MEPS. Prices are rising around the world. Hot rolled coil imported into Asia is reported to be selling at more than USD 500 per tonne. Prices of coil exports from Russia and Ukraine have been increasing steadily. US prices also remain strong. Price increases are therefore probable. The extent of any likely third quarter attempted price increases is not yet clear. At the bottom end of the range are suggestions of Euro 10-30 per tonne for uncoated coil. At least Euro 60-80 per tonne is being mentioned for hot-dip galvanized coils, suggest MEPS, where mills, having rejected the idea of a special surcharge, are seeking to pass on their record high zinc costs.

For full report, see http://www.meps.co.uk/keynote4-06.htm

blogger@steelonthenet.com