Unusually for this time of year the European Steelmakers are looking “bullish” with regard to third quarter prices. Following announcements in March of price increases effective from the 1st of April, it is anticipated that the strip producers will announce a further in June. Global market conditions appear favourable with Asian and Russian export prices increasing. Strong demand in Germany and Italy will be boosting further the mills confidence.
The ease with which the producers appear to have achieved the last increase combined with relatively full order books seems to have boosted their confidence regarding forward pricing. Some stockholders are reporting quoted lead times for re-supplies to be extending in to September (most European mills close for 2 to 3 weeks in July/August).
Again this tactic is not without risk, but it seems likely that further price increases will ensue and MEPS are forecasting € 10/20for hot strip and €60/80 for galvanised, (partly due to the high cost of zinc).
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