European distributors and service centers for steel remain concerned about the availability of steel supplies from mills and the impact of the price jump. This is reported by eurometal.net in a recent article.
Tight steel supply availability through second quarter
In recent weeks, a number of market participants have voiced their concerns. Most believe that tight steel supply availability will continue at least through the end of the second quarter.
Tight supply not just for steel coils
Clisson Groupe, a major French steel distributor, issued a letter to its customers in December explaining the problems it is facing due to difficulties in sourcing materials from its suppliers and the rapid rise in steel prices. The company noted that the situation is not expected to normalize at least until the 2nd quarter. It added that supply shortages originally occurred mainly in coil products, but then spread to all other categories, including sheet, tube and long products.
A service center in the Benelux countries confirms this view. “Supply and demand got completely out of balance,” it says. “There used to be more supply than demand, but now the situation has reversed drastically.”
Source: eurometal.net
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