EU steel prices rose in March according to MEPS research data.
The rise in steel prices in Europe comes ahead of US plans to impose a 25% import tariff which could come into effect as early as Friday this week (March 23). Some countries are still trying to get exemptions from the proposed tariffs amid some confusion over the criteria for exemptions.
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The MEPS said the US tariff plans dominated discussions during MEPS research in March. However, purchasing and prices were not directly affected by the news.
European strip mill product basis values continue to move up and the MEPS said producers appear confident that these will be reached, supported by good order books, extending delivery lead times and the low availability of imports.
Despite easing in February, manufacturing output growth remains high in Germany, the MEPS noted, and this is reflected in strong steel demand. Recent strip mill product business was negotiated at figures above those reported, last month, but not yet at the minimum target levels proposed by the domestic steelmakers. Order intake at the domestic mills is 'positive and delivery lead times continue to lengthen'.
In other parts of Europe the MEPS offered the following market summaries:
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By GlobalData- In France, activity, in the main steel consuming sectors of automotive and construction, is described as good. This, together with a lack of imports, helped, once again, to push up strip mill product basis values, in March, the MEPS said.
- The Italian steel market is 'quiet, at present, with substantial speculation surrounding the political situation'.
- UK demand 'remains subdued'. However, a 'number of distributors reported a slight improvement in activity over recent weeks with inventories reducing'.
- In Belgium, basis values continue to escalate and 'further rises are anticipated'.
- The Spanish steel sector is 'performing well, with good demand'. Distributors of strip mill products are busy, the MEPS says.
