Prices have continued to increase this week in the northern European flat steel market. As the end of the year approaches, flat steel prices in southern, central and northern Europe have been climbing since the last week of November. In the absence of support from improving demand, these increases have derived their momentum from the weakening of the euro against the US dollar. The highest price increases throughout Europe are observed in northern Europe, where traders' hot rolled coil (HRC) offers stand in the price range of €560-580/mt. Currently, demand in northern Europe is better as compared to previous months.
Among the flat steel import offers given to Europe, Russian and Ukrainian origin offers stand out. Having filled their order books for their December production, Russian steelmakers, including Severstal and MMK, have increased their HRC offers by $35-45/mt as compared to their offers for December production. Similarly, Ukrainian producers Ilyich Iron and Steel Works of Mariupol (Ilyich) and Zaporizhstal have entered the market with their January production, after selling all their December production. Ilyich's HRC offers to Poland are reported at $645/mt DAF. Concluding bookings at these levels, traders aim to replenish their inventory levels before the end of this year. The current increases in flat steel prices are causing buyers to make new purchases, due to expectations of further price increases.