Penultimate month before the winter and New Year vacation has proved to be a savior for the steel market as inventory replenishment picked up. The weakening Euro v/s USD added pepper culminating in all round price hike.
Northern Europe was the at the centre stage with prices having taken a quantum jump of EUR 20 per tonne to EUR 30 per tonne since a week ago.
HRC which was being offered at price well below EUR 500 per tonne CFR FO are now negotiated and booked at prices not lower than EUR 530 per tonne CFR FO with EUR 10 per tonne extra for 2000mm width.
It is learnt that a major trading house has booked a parcel of HRC P&O at a price of EUR 600 per tonne DDU Belgium which is equivalent to about EUR 565 per tonne to EUR 570 per tonne CFR FO.
Southern European countries like Spain and Italy are less buoyant reeling under surplus availability and depressed levels. In Italy domestic producers are offering below EUR 470 per tonne to EUR 490 per tonne DDU which in any case is an improvement from previous levels of EUR 440 per tonne to EUR 450 per tonne.
CRC quotations and bookings have also gone up by EUR 20 per tonne to EUR 30 per tonne from EUR 530 per tonne to EUR 560 per tonne effective but the impact on downstream HDG has been marginal.
HRP levels have gradually ascended by EUR 20 per tonne to EUR 30 per tonne from previous EUR 530 per tonne to EUR 550 per tonne to EUR 560 per tonne minimum EXW basis price. The flurry is prominent in Germany.