Despite Restrained Terminal Inquiries, European Galvanized Plain Sheet Costs Move up
- 20-Jan-2023 5:50 PM
- Journalist: Emilia Jackson
Germany: In the week ending January 20, 2023, the Galvanized Plain Sheet prices witnessed an upward momentum in the European market due to improved trading activity and buoyant market sentiments. As per market players, the purchasing interest for Galvanized Plain Sheet has begun to climb, with buyers noticing to accept recent manufacturers' rate hikes. Additionally, the inventories of Galvanized Plain Sheets in the regional market were deficient due to issues such as production curtailment and higher lead times. Domestic traders assert that the Galvanized Plain Sheets stockpiles are not high at the distributor edge, and the imported stocks are also relatively modest this week.
As per our sources, the European mills are at ease this week, waiting for the buyers to accept the price hikes. As a ripple effect, consistent pressure over inventories prompted buyers to pay for hand-to-mouth purchasing. The efforts of the mills to raise Galvanized Plain sheet prices were propelled by a combination of factors, such as an upswing in raw material costs, diminished coil supply due to production cutbacks, anticipated demand recovery, and full manufacturer's order books. On the other hand, sluggish consumer demand and a cautious outlook fueled buyers' reluctance to stock higher volumes of Galvanized Plain Sheets. Buyers claim that the mills are hoping for higher prices due to the surge in restocking activity. However, restocking will end in the upcoming month. Buyers are unwilling to take risks and purchase larger volumes at this time because they know end users are not very active. Moreover, risks are too high this quarter with the current geopolitical and economic situation, and outlooks are uncertain in the European market.
Buyers agreed that the domestic hot-dipped Galvanized Plain Sheet prices in Northwest Europe settled at USD 950/MT ex-works Ruhr on January 18, up by USD 60/MT week on week. Additionally, the domestic prices for the hot-dipped Galvanized Plain Sheet in southern Europe were settled at USD 900/MT ex-works Italy on January 18, up by USD 55/MT week on week. The assessment was based on tradable values heard at USD 870-950/MT ex-works and offered at USD 890-920/MT ex-works. Notably, distributors and steel service centers said end-user demand was still stable at low levels, so implementing a price increase would be difficult.
According to ChemAnalyst, the Galvanized Plain Sheet Prices are forecasted to remain stable in the upcoming week amid the need to restock, and buyers will accept higher prices in the short term. Uncompetitive and limited overseas offers of Galvanized Plain sheets will support the domestic price uptrend.