In the survey conducted among German producers, distributors, traders and end-buyers at the start of May, the index for steel price development stood at 96, indicating a notable expansion -- an index of 50 indicates stability -- from April when the index tallied 92.
Even as HRC prices move to unprecedented levels, it has been difficult to determine a unanimous workable price in Europe due to the limited availability of critical steel products, most notably cold-rolled coil and hot-dipped galvanized material, by which numerous niche deals of varying volumes have been executed according to the fluctuating stock levels of mills and stockholders.
As the supply situation tightens across Europe, sources have said that mills appear to be at high capacity utilization, with an increase in production unlikely even once maintenance issues at some mills and re-rollers is completed.
Prices were therefore expected to remain bullish if supply levels remained critically low across Europe, with current prices heard at or above Eur1000/mt ex-works Ruhr and between Eur980-1,000/mt ex-works Italy.
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