Vanilla Steel data point to flats market bottoming

Data from independent digital steel platform Vanilla Steel show flat steel prices have bottomed in the past month, the company's co-founder and chief executive Alexis Ducros told Argus today.

Since returning from the holidays, prices for transactions on Vanilla Steel have risen 6-14pc from December, Ducros said.

The company had a high number of listings — totalling 75,000t — in November as mills and service centres destocked their high-priced inventories ahead of the end of year. Tonnage captured as part of the Argus index formation process fell almost 80pc in November on a year-on-year basis, as service centres shunned purchases and stayed out of the market. Argus' benchmark northwest EU hot-rolled coil (HRC) index fell from €663.25/t at the start of the month to €602.25/t at the end.

The amount of listings on Vanilla Steel dropped by 30pc in December to 52,000t, as suppliers withheld their offers in anticipation of increases in the new year. Argus' northwest EU HRC index rebounded from €611.25/t at the start of December to €680.25/t by the end of the month, as service centres began to restock somewhat and mills hardened their resolve.

Vanilla Steel listings so far this month have been limited, with participants trying to ascertain how prices will move. Ducros expects this to accelerate in the second half of January, despite higher prices.

By Colin Richardson