German steel producers are expecting a slight rise in steel prices over the coming weeks, while traders and end-buyers expect a stable pricing environment amid concerns over automotive demand and high volumes of imported material, according to Platts’ monthly German steel sentiment survey.
The survey, conducted at end of August and the beginning of September, showed the overall expectation for steel prices at 56, with producers the most bullish at 67. Traders and distributors as well as end-buyers expect a stable development at 50 (50 denotes stability).
The sentiment for steel price development turned gradually from extremely bullish at 96 in May to a more stable expectation over the summer as the summer slowdown took hold of the market. Over the last two weeks, however, market sources told S&P Global Platts that the takeing of volumes at steel mills by the automotive industry would be less certain amid the semiconductor shortage that forces carmakers to have intermittent production.
Market participants are now mostly back from the holidays and one European mill was heard starting to offer hot-dipped galvanized coil for October – which was one of the most sought-after products during this year’s material shortage. The mill was previously officially booked until year-end.