December 2011 | Aluminium Sheet & Extrusions
Demand for FRP stabilizes: European market analysis - Flat Rolled Products
Standards conversion margins in N.Europe remain weak but 5754 coil seems to be holding in the €800 -850 range for serious volume and up to €1000 for spot sheet for end December ex mill (still available) not including prompt payment incentives and retroactive discounts.
Fear prompting extreme caution, rather than any real change in demand seems to be the main factor at work in the market. As is usual with a major holiday period approaching, volumes are low and reports of conversion margins show wide variations. However, although there are very few reports of major forward block bookings into 2012 it does seem that January and some February deals have been struck. Mills are not particularly happy with the conversion margins obtained – some comment that this cannot be sustained and capacity reductions are being actively considered – but at least the situation seems to be stabilising. Maybe the eternal Armageddon scenarios reported by media in the finance markets have induced a sort of ‘crisis fatigue’ in the real world of metal supply and demand. The supply chain is nearly empty and it can hardly reduce further without causing...
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