Are industrial metal prices peaking?

While European manufacturers were determined to maintain upward price momentum, they stalled in June. So far, according to the MEPS survey, in a number of countries, buyers have resisted attempts to reach higher basis values ​​for late deliveries in the third quarter.

The price of aluminum on the London Metal Exchange trading fell to $ 1606 per tonne, but since the beginning of this year it has risen by 3 percent, which is associated with an increase in the use of the metal in various industries due to unique properties that can be enhanced with the help of aluminum anodizing services , which provides additional surface protection against corrosion, while the film can be painted in any color.

Steel and raw material prices continued to fall in Asia as global export offerings plummet amid EU trade protection, but interest from overseas buyers is returning. The fact is that at some production sites, the likelihood of disruption of supplies in the region increases. German buyers report that the factories are currently fully loaded. Short-term demand may not always be met, but orders for later delivery this year are being accepted. Service centers only buy for their immediate needs as they expect prices to come down later this year. Demand is relatively stable.

Despite muted activity in the French market, prices continued to rise at the end of May, at around € 20 per tonne. It was difficult for buyers to obtain metal, especially coated rolls. Delivery from most manufacturers stretches until August. Consequently, new orders will only be delivered after a long summer vacation.

The decline in the number of available products from European suppliers means that customers expect the renewal of Chinese offerings at competitive rates very soon.

Further price increases were noted in the UK. A number of customers are facing challenges as uncertainty about the future of Tata Steel's UK facilities has prompted caution in ordering ahead of time with the company.

Recent gains from rapid price increases in the Spanish market leveled off in June. Domestic manufacturers took orders until the fall. July /August shipments are fully booked due to lack of imports. However, the service centers have recovered their stocks. In addition, buyers believe that renewed interest in imports could lead to discounts from European factories when local prices are so high.