Date: Sep 21, 2018
Key data from the Wednesday September 19 pricing session in Europe.
Key drivers
- Thin stocks among traders continued to fuel price increases in the European market, with offering prices surging past $100 per kg for the first time since 2005.
- While consumer activity has been somewhat thin this week, spot interest from traders has been sufficient to drive the precipitous price rise. However, some mills were seen entering the market and are expected to secure tonnages over the coming days.
- Moreover, large mills have begun to engage in long-term contract negotiations for 2019 to ensure they are able to secure volumes in light of potential supply shortages.
- Chinese exporters have not been seen actively offering in the market because they have been hindered by supply constraints and strength in the Chinese domestic market.
- Korean suppliers similarly remain absent from the European market, with converters having difficulty securing feedstock from China at this time.
- Asian consumers and traders outside China remain unable to secure material from Chinese exporters, with traders seen purchasing as high as $103 per kg for non-Chinese material.
