Prices for sheet metal continue

The growth of the global sheet metal market continues. The main sources of price increases continue to be the United States and the European Union, where base quotations for hot-rolled steel exceeded $ 1,450 and 800 euros per tonne EXW, respectively. But in other regions, the cost of steel products has noticeably increased over the past week.

Such an active and prolonged growth does not seem entirely justified, given the economic problems in Europe, where the extension of quarantine measures caused a collapse in world oil prices, and Turkey, where scrap metal is getting cheaper, and the dismissal of the head of the Central Bank and an increase in interest rates caused sharp fluctuations in the exchange rate. However, so far the market in Western countries continues to grow due to an acute shortage of rolled products and on the basis of favorable expectations.

Many Chinese companies suspended export operations at the end of March, awaiting clarification of the situation with VAT refunds. It is believed that the PRC government will reduce its level, which will lead to an increase in export quotations for steel products. But how significant it will become is not yet clear. Meanwhile, leading sheet metal producers in other Asian countries are counting on further price increases in the second quarter and are raising their quotations accordingly.