STEEL NEWS

Steel prices in Germany will rise with production

German steel market sentiment remains optimistic, Platts reports, with prices and production expected to continue to rise in the coming weeks. Steel price dynamics index stood at 75, similar to the September survey of 77, which indicates moderate growth expectations (index 50 indicates stability). In contrast to the September survey, where the forecast was at 81, anticipating a sharp increase, distributors in October climbed to 75, which is in line with the indicators of end customers and manufacturers.

The rise in prices was mainly driven by sheet metal, which has been on an upward trend since late summer. The daily Platts TSI index for hot-rolled coil ex-works in the Ruhr region rose by almost € 50 during September to € 499 / t on October 8, while European prices for rebar ex-works for the North-West Europe grew only marginally. October 2, according to the Platts TSI weekly index, a little over € 5 per month to € 475.50 per tonne.

As German producers continue to ramp up production, steel production is expected to continue to climb, with an all-market index of 68, slightly lower than 71 in the previous month.

Inventories are expected to be mostly stable, with a slight upward bias, with the 56 index suggesting that purchases are increasing after a recent pause in the distribution sector. However, the expectations of manufacturers, distributors / traders and end customers are mixed. The expectations of end customers have changed significantly. The September index showed a moderate decline in inventories, which gave way to growth in October, while producers' expectations changed from 31 to 42.