Prices for commodity plate grades from northwest European mills have continued softening over recent weeks, whereas higher-quality grades remain in short supply and retain higher prices.

“The big integrated mills have full order books and are not yet making concessions on prices,” one southern German buyer comments. Other sources, however, point out that this is true only for high-quality grades, which most mills prefer to make.

For commodity grades, mills are more inclined to make price concessions. At the end of August, prices were at €1,100/tonne ($1,276) delivered, with S355 grade slightly above this and S235 somewhat below. Prices came down €50-70 over the course of September. A northern German buyer tells Kallanish of deals at €1,030/t, “and I think it will dip below €1,000 in a while”, he adds.

A central German buyer will receive material in the fourth quarter on an earlier-signed contract for €1,050-1,070, and confirms mills’ willingness to agree concessions, resulting in €20-40/t drops for Q1 2021 contracts. “But we are wary, and would only go for small tonnages at the moment,” he notes. He observes that availability has improved, and that certain volumes can still be had in the fourth quarter with lead times of 6-8 weeks.

He also notes, however, that mills would grant low prices for commodity grades only in combined orders with higher grades, which is where they make their money. “For quenched and tempered grades, or wear-resistant steels, the lead times are still 3 to 4 months, and the mills are not moving here,” he points out.