The coil shortage of steel and stainless steel in Europe continues. According to media reports, delivery times from integrated steel mills, normally 6 to 12 weeks, have now reached up to 5 months. Some mills are no longer even accepting orders for the third quarter of 2021.
At least the next four months are expected to be very tough for steel buyers, sources told news portal Kallanish.
Coil shortage: German steel mills have little capacity left
Some German steel mills have limited capacity left and are said to have only contract quantities available and those only in lower quantities than usual.
Steel inventories threaten to dry up
Inventories at distributors, dealers and service centers are falling faster than new material is coming in. Market sources told Kallanish that delays in orders or waiting too long mean that material is simply already unavailable.
Stainless steel prices rise even though nickel prices have fallen
Contrary to the belief of many market participants that the sharp drop in nickel prices should be accompanied by a drop in stainless steel prices, stainless steel prices continue to rise over the past week. This was reported by Fastmarkets on March 19, 2021.
Nickel no longer the most important indicator in stainless steel
Nickel has currently lost importance as an important indicator in stainless steel prices. Other raw materials are currently much more important in the calculation here. Such as ferro chrome or scrap. We reported.
Material shortage in Europe also drives up HRC prices
The European market for HRC also felt again last week that steel has become a scarce commodity in the EU. Prices continued to rise due to tight availability. Also, according to Fastmarkets, EU steel mills seem to continue to look for ways to further increase prices. ArcelorMittal is also said to have increased prices for HRC in Northern Europe by a further $60 per ton.
Outlook for the European steel market
In view of the coil shortage, rising prices, severely restricted import possibilities and now also steel production reductions in China of over 100,000 MT per day, it will not be any easier for European buyers to replenish stocks.
Even though Chinese steel will remain unattractive for EU buyers due to safeguards and anti-dumping measures, the cuts in China will have an impact on global availability.
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