EU mills remained positive about hiking prices in March

EU mills remained positive about hiking prices in March

Demand picked up in March across Europe with prices stabilizing with the exception of Germany, after a quiet first quarter. Mills became more confident about raising prices in Q2 as it became apparent there were gaps in certain stocks. Italian mills say they are optimistic about Q2 while sources indicate that a €10/mt increase was implemented by the mills at the end of March. In March of this year, light sections prices in Italy stayed the same from February at €300-310/mt after attempts to raise prices in the first quarter failed. This was primarily due to low demand as well as Polish beams coming onto the market. Meanwhile, sources say the French sections market is similar to Italy's. In March, French mills were pushing for a €10/mt price increase. The sections market in both countries is expected to pick up this year, when new infrastructure projects begin this month or in June in both nations. Meanwhile, transaction prices in March were at €335-340/t from stocks and about €315/mt from mills. Sources report that heavy competition between stockholders show signs of weak margins. Steel insiders in the UK are optimistic since Corus announced its price increase of £10/t on May 1. Stockholders indicate that such a price hike definitely opens the way to further increases while helping to stabilize the market. The reason for such euphoria in the UK has been due to lower stock levels over the last several months and gaps that appeared in certain categories. These encourage mills to ask for higher prices. Sources in the UK say demand remains stable and signs for stock shortages mean a full market recovery in Q4.