London — The northwest European long steel market is gearing up for price increases in the first week of September, amid strong mill order books, sources told S&P Global Platts Friday.
Finished steel pricing sentiment was positive for the next two months, despite scrap prices being expected to drop in September, in line with the international market.
"Scrap is going down but prices are seasonal. Mills know that during September-November people would need to buy so they offer based on that demand. If I was a mill I would also ask for an extra Eur10 and ignore all other factors, such as scrap," a buyer in the Benelux area said.
Sources confirmed that sections mills in northwest Europe are booked for the next eight weeks. One buyer said he had already heard higher offers for category 1 sections as of this week.
"If you order today the lead time for sections is October or November. Depending on the mill, I would say prices are Eur610-620/mt," he said.
Another buyer said he had stocked up on extra inventory before the summer holiday period, and did not buy this week. His last purchase was at the "old price" of Eur600-610/mt.
Merchant bar market leader Beltrame was still offering at Eur155/mt, but it is "looking for an increase next week," sources said.
Rebar prices were also stable at Eur290-300/mt base delivered, with higher prices expected next week.
Meanwhile, the import market remains unattractive, with market players fearful of breaching the safeguarding quota.
