NW Europe HDG prices set to rise

Posted on 12 July 2018
 

Source: Kallanish

 

Following a very long period with very little movement in prices for most coil products, some sources in Germany say that the time for an increase in hot-dip galvanized coil prices has now come.

“Prices have risen by €20/tonne ($23) and more recently, and we expect a further surge by €30-40/t until the end of the year,” Kallanish hears from a southern German distributor specialising in HDG of mostly special grades and gauges. The momentum is “… very definitely” caused by the efforts on the EU level to erect a wall of safeguard measures, he says. Mills are thus encouraged to lift prices due to significant demand and a lack of imports from Asia, he says.

The rise has kicked in over June to July and has not yet been widely registered. A manager from a major north-western service centre claims that the long-term price of around €680 is still valid but says that his gut feeling is that a price move should be imminent. He confirms that there are long lead times for HDG, with production in early December, “… so that we will no longer get it this year.”

However, he notes that there might be more luck with standard material. “It’s absurd, but if a mill finds it has leftover capacity gaps they need to close, you may get the material faster and cheaper,” he adds.

 



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