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Pricing sentiment turns sour in Germany: Platts survey
이름 : sbb 등록일 : 2017-04-25 15:10:32
Sentiment turned sour in the German steel industry this month, with sources more bearish regarding both prices and demand. The latest Platts German steel sentiment survey of the market gave the first negative reading for prices since July 2016.

The sustained firmness in the European flat steel markets crumbled last month after the European Commission decided against anti-dumping duties in a hot rolled coil case. The panic saw a number of central and southern European mills drop prices before the Easter break and, while the market has stabilized, the outlook among flat steel market participants weakened.

A reading of 50.0 in the Platts survey indicates stability, so at 37.5 for prices and 31.3 for inventories it is clear that the market generally expects April to have been a disappointment in terms of both pricing and restocking.

The most bearish group of respondents were the stockholders and service centers where the readings for prices and inventories were 20.0 and 10.0 respectively. Most sources contacted by Platts indicated that the market is in a wait-and-see mode with few willing to commit even with seemingly attractive offers on the table.

Amid these expectations, the outlook for increasing steel production is not particularly good news. German crude steel output in the first quarter of the year grew 1.8% year-on-year to 10.98 million mt, while the wider European Union has produced 42.5 million mt, an increase of 3.8% over Q1 2016. 

With domestic supply increasing, many will be hoping import volumes continue to decline or demand to rebound, otherwise prices may remain under pressure.

-- Peter Brennan