In the European Union, steel distributors are skeptical about price increases

Many German steel buyers believe that the case for higher base prices for flat products is not convincing given that raw material prices have fallen. In addition, there are attractive offers for imports from third countries, and due to the euro /dollar exchange rate, supply still exceeds demand. Most of the business representatives will end the first quarter on old purchases.

After a long hiatus over Christmas and New Years, it is too early to assess the real level of activity. Some end users have made orders before the holiday, while others are delaying this moment. At this stage, it became difficult for producers to judge the true level of demand, in particular, with the uncertainty of oil prices and the constant fall in the value of the euro.

In the UK, buyers are hesitant to successfully implement the first quarter price increases offered by ArcelorMittal, as they have received much cheaper offers from Scandinavian suppliers. Service centers got good sales in December and January also started steadily. The Belgian steel market situation has remained largely unchanged since December 2014 and has been described as dormant.

Given the low demand and low prices for raw materials, buyers are asked why steel prices should rise? The majority of service centers placed orders just before Christmas and are therefore in no rush to close new deals. Imports from third countries are low as the euro is weak against the US dollar.

The benchmarks remained largely unchanged in Spain. Buyers explain that while they are aware of ArcelorMittal's desire to raise prices, other suppliers have yet to communicate their intentions. However, distributors claim their businesses are under new pressure.