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EU Steel Mills are struggling with low profit margins--The 15th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
2/24/2014 Metal &Metallurgy Exhibition |
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EPS International Limited has noted a degree of price stability in the European flat products market over the last month. Steelmakers continue to push for higher prices, proposing between EUR 30 per tonne and EUR 40 per tonne in order to boost their low profit margins.
However, the announcements and the reality are somewhat different. Buyers believe the target figures are unrealistic, given the present state of end-user demand. Consequently, they continue to try to resist the mills’ aspirations. Prices for some quarterly contracts have already been rolled over from period one to the second trimester.
With the exception of a small pickup in activity during January, as companies concluded business for February and March, German demand has remained flat. Consumption in the second half of 2014 is expected to be better.
Despite the mills’ announcements of increases, French basis numbers have been largely stable over the last month. Delivery lead times remain short, at around three weeks maximum for new production. There is limited third country import penetration.
The Italian economy is slow and steel market activity is not picking up, despite optimistic announcements on GDP. Final demand is weak, with only small tonnage orders being concluded. Distributors are unable to lift resale prices and, therefore, they are unwilling to pay more to steelmakers, regardless of producers’ efforts to persuade them.
金属展-冶金展-2014广州巨浪金属暨冶金工业展览会-亚洲最大金属冶金展-巨浪展览-2014 China(Guangzhou)Int’l Metal &Metallurgy Exhibition
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