The Hanover Messe is Europe’s largest industrial trade fair. Every two years, industrial companies gather in Germany for this week-long event.
As part of its rapid expansion in Germany, Filame is taking part in this trade fair with AWEX, showcasing its unique expertise in the manufacture of precision metal parts.
Steel prices were more or less stable in Europe in the first quarter.
However, due to certain incidents at the level of certain producers (blast furnace fire at Arcelor Mittal and planned maintenance at Tata Steel), there is a risk of a decrease in available tonnages. Arcelor has announced a reduction of 1 million tonnes.
This has already led to some increase in delivery times, but it cannot be excluded that supply will fall short of demand, which will have an effect on prices. We are already seeing a slight upward trend of between €50 and €100 per tonne in April compared to March. We must not forget to add to this the energy surcharges which vary from producer to producer between €100 and €200 per tonne.
Chinese production is currently almost entirely absorbed by the domestic market and Chinese companies will do everything in their power not to let prices fall. The same is true in Turkey, where domestic demand is strong after the earthquake and reconstruction needs.
As far as alloy surcharges for the various stainless steel grades are concerned, prices are also relatively stable. There was a slight upward push in February and March but in April prices are back to the level of January prices. These elements coupled with the evolution of steel prices do not currently indicate a likelihood of a strong increase in the short term.
The Advanced Engineering show is the reference event in Flanders for the latest technical developments for the manufacturing industry.
Filame exhibits all its know-how in the manufacturing of precision parts for various industries such as aeronautics, medical, automotive, solar, …
Come and see us at booth 149 on May 11 and 12.
European market leader ArcelorMittal has once again hiked its hot-rolled, cold-rolled and hot-dip galvanised coil prices.
The producer is now targeting €1,100/t for Hot Rolled Coil and €1,250/t for Cold Rolled Coil and hot-dip galvanised coil with immediate effect. The lead time depends on region, with eastern European deliveries available more quickly, while buyers in northwest Europe are already facing October and November deliveries in some cases.
The increase is unsurprising, as the mill’s previous offer already looks cheap compared to the actual market — its last offer was €1,050/t, and Argus’ benchmark daily northwest EU HRC index was above this level at €1,055.25/t yesterday. Other mills had already started offering as high as €1,100/t prior to the latest announcement, and small sheet tonnages have reportedly transacted as high as €1,150/t on an ex-works coil equivalent basis.
The announcement has come earlier in the week than has typically been the case, given holidays in much of mainland Europe later this week. The €50/t move is higher than the recent incremental steps, particularly on HRC, which have been around €20-30/t.
High freight rates are enabling domestic producers to keep pushing prices higher, as they are making import options more expensive. Russian material was offered at €1,010/t fca Antwerp last week, but that level is likely to be higher again when the new quote is issued later this week.
Although the semiconductor-related automotive stoppages and slowdowns are a worry for producers, and the wider supply chain, sell-side sources suggest any reduction will lead to strong pent-up demand once the situation normalises.
Publication date: 12 May 2021
By Colin Richardson