In Germany, sentiment on rising steel prices eased

German steel price expectations fell significantly in February from previous months, according to S&P Global Platts' monthly steel sentiment survey.

In a survey of German manufacturers, distributors /traders and end buyers conducted in early February, the Steel Price Index stood at 65, indicating a slight expansion (50 indicates stability), but a significant decline compared to December and January when the index was 91.

A source at the European service center said prices will remain stable as long as there is a shortage of supply, demand remains high and imports remain in their home markets.

Inventory levels in Germany are currently at a 33-year low and the survey showed participants expect further declines

“Despite the pandemic, industrial demand is good. End-user stocks are low and they need materials every day - this will not allow prices to fall, ”the source said. “There are enterprises from other countries that are interested in sales in the EU, but they are hampered by duties and transport difficulties. The manufacturer knows it can keep prices high and understands that buyers don't have many alternatives to buy. ”

ArcelorMittal's recent hike in flat steel prices has failed to push the market higher, and sources said the move kept prices at current levels, which are 13-year highs in historical comparison for hot rolled coil.