Steel Times - Selles' market for strip in the EU News Updated 2 February 2000 Sellers market for strip in the EU Massive price increases are being demanded by the EU steel mills for strip mill products. Quarterly contract prices for these enterprises are not incorporated in the series. The steelmakers are obviously anxious to claw back the substantial discounts given to these customers during the last recession, which ended just a few months ago. These price hikes are also being associated with cuts in supply for most consumers. The market for cold rolled and galvanised steel has been turned completely on its head over the past six months.
Shortages are the main feature of the strip mill sector and have developed for several reasons.
The EU market strengthened as demand picked up much quicker than anticipated. At the same time, production was curtailed at several factories due to a series of mechanical breakdowns and accidents. The resultant late deliveries prompted customers to increase their order volumes to maintain a place in the queue. It is now a seller's market for strip products. The mills have seen the opportunity to raise prices.