The revival rage has been spreading all across Europe with enhanced intensity as the year draws to close. Major HRC mills are increasing prices by an average EUR 20 per tonne to EUR 30 per tonne indicating further hike in January.
The minimum HRC levels are EUR 510 per tonne to EUR 520 per tonne CFR FO with local mills in Italy and Spain touching EUR 550 per tonne DDP. Cheaper HRC is available only from Ukraine.
Iliych and Zaporstal HRC are available at prices ranging between USD 640 per tonne to USD 650 per tonne CFR FO, but since these materials have restricted application in pipe making in small units due to extremely reduced coil weight and non suitability for cutting into sheets, the major demand has to be met from the domestic sources.
Italian customers are coming to terms with higher price for HRC as domestic producer Riva has substantially increased prices while the only other competitor Arvedi has announced closure for New Year. The ensuing shortage will lead to price hike which will carry through the holidays to New Year.
On the flip side, it is learnt that Mir Steel UK Ltd which has been recently acquired by Mechel Group of Russia is rampantly offering HRC at EUR 460 per tonne to EUR 470 per tonne FOB Newport, which is aggressive pricing for Antwerp. However market sources are indicating that material could have some problems of coil break and flatness which is restricting its permeation.