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| TITLE |
Analysis of plate market in EU in Q1 of 2009 |
| WRITER |
administrator |
DATE |
2009-03-31 16:06:02 |
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Analysis of plate market in EU in Q1 of 2009
Tuesday, 31 Mar, 2009
During the 1st quarter of 2009, plate prices have been under pressure in Europe and have been loosing substantial ground.
Still in December 2008, prevailing quotation from major Mills were ranging around EUR 470 per tonne to EUR 500 per tonne CFR FO, about EUR 350 per tonne to EUR 400 per tonne lower than the pick of August 2008 and the general understanding was that bottom, with some minor tolerance, was reached. As a matter of fact, some buyers were booking during that period orders at prices around EUR 450 per tonne in Italy (BlueScope).
On the contrary, at the restarting of the activity in mid of January 2009, we all clearly understood that descent to come was still long and deep. All flat products, mainly HRC and HDG were loosing ground, pushed by the price decrease of slabs. HRC from a level of about EUR 400 per tonne CFR FO lost about 25% and today prevailing market prices are around EUR 300 per tonne CFR FO with customers bidding EUR 280 per tonne to EUR 290 per tonne. HDG was already extremely weak in December with offers well below EUR 500 per tonne and today has reached EUR 450 per tonne. In case Chinese Government will either delete export taxations or increase rebates, we might see a further decrease.
In the meantime plate prices were still remaining at around EUR 450 per tonne CFR FO. However a weak Euro against USD was not helping sales and bookings. Then the spread between HRP and HRC was becoming evidently too wide. With HRC going in direction of EUR 300 per tonne, HRP price could not remain so high and by end of February and beginning of March a new, deep decrease was taking place.
Resource from www.steelguru.com |
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