The EU weekly average price is €62 above the €1698/t intervention price, with quotes in some individual member states now very close to it.
At the moment, market commentators suggest that European manufacturers are managing stocks and cashflows themselves rather than offering product into the scheme. However, should the scope to do this start to run out we may see some SMP sold into intervention.
At the latest GDT auction on July 15 and adjusting for currency, average SMP prices for all six contract periods were below intervention level, showing the pressure global prices are under. This suggests there may be even more pressure on the way for the EU market from New Zealand and Australia, as previously reported. If so, the recent proposal to extend access to intervention stores and private storage aid could be very welcome.
