Market sources state that hot rolled coil (
HRC) demand in the
UK has remained weak, while Tata Steel's revision of its payment policy, cutting its period for payment deferral to 30 days, has caused local buyers to seek new suppliers. This change is not very welcome in the market as buyers will need more cash.
Meanwhile, import
HRC offers to the
UK have moved up by £5-15/mt ($8-25/mt) as compared to two weeks ago, while Tata Steel's prices have increased by £5/mt ($8/mt). However, it will become clear in the coming week whether the new prices will find buyers.
HRC prices in the local
UK market can be found at £425/mt ($706/mt) ex-works for February production and excluding VAT.
Meanwhile,
HRC offers from other regions of Europe to the
UK stand at £415-420/mt ($689-697/mt) + VAT CIF for shipments in March. In addition, Indian
HRC offers stand at £415-420/mt ($689-697/mt) CIF for April shipment and excluding VAT, while April-May delivery Russian
HRC offers to the
UK are at £420-430/mt ($697-714/mt) CIF, exclusive of VAT.
£1 = $1.66