Steel prices in Europe gained further last week as Euro exchange rate pushed USD denominated prices up by another 2% to 3%.
The important point to be noted is that consumption is still lacking in South Europe and customers are extremely cautious. No one is available to book material in position, at market prices, as perspectives are not giving enough assurance of a quick liquidation.
Booking proposals are given only for material ready in stock at prices much below market level.
Traditional purchases of end of the year for fiscal reasons are not anymore pursued as steel distribution sector has in general very little to compensate.
The year is ending with results barely in black ink and no one is available to put them at stake
Spanish market is basically dead with very little imports and most of the transactions done within domestic frame. Same or even worst situation is characterizing Portugal where prices are probably the lowest in Europe because of North African Mills and suppliers.
Italian market is slightly better but end users are shrunken between higher raw material prices and costs and abroad competition that is quite often winner. The extremely confused and shaking political situation is also suggesting conservative attitude to all operators.
German market is in a much better condition although also suffering of diminished consumption levels. Prices in Germany and North Europe are sensible higher than in South which is reflecting the general economic condition.