Europe's spiraling flat product prices spark fears of downturn

摘要

The third guarter of 2004 saw the largest single rises ever recorded for Europe's carbon steel flat products, and customers largely accepted them because of booming global demand. Austria's Voest-Alpine lead the way, with increases for July 1 ranging between 100 euros and 130 euros per tonne, while Corus went for 85 pounds per tonne - or 126 euros - for cold rolled and hot dipped galv. The cost of raw materials was increasing at such a pace by early summer that some producers were taken by surprise. Within weeks, Germany's Salzgitter revised its initial announcement for July 1 upwards from 90-105 euros to as much as 120 euros. Real increases in domestic consumption also drove the rises. Despite its image as the dullest market in Europe, a slight upturn in the German economy caused the country's mills to book nearly 25 percent more orders in the first half of 2004 compared with 2003, said Dusseldorf steel association WVStahl.