Around $30-40/mt increase in slab prices at the beginning of the February is inevitably reflected to the flat rolled prices at similar levels. Producers are putting their long awaited rice increases in effect.
Customers have for some time been operating on lower inventories as they did not feel confident about the market trend. Although no strong demand has come up yet in the markets, flat rolled prices are not expected to indicate a decline in short term, as they are supported by firming raw material prices. This situation seems to encourage customers to buy.
The decline in supply volume of Russian and Ukrainian flat rolled producers supports the price increases. The increase in natural gas prices is already reflected to the costs of Ukrainian producer Illych and the producer operates at 40 percent capacity. However, Illych is expected to make a price announcement next month for April production / May shipments and the price is projected to be around minimum $400/mt. Bulgarian origin hot rolled coils are being sold at $450-455/mt CFR Turkey for May loadings. The price level of hot rolled coils ex-Mittal Steel
There is material shortage in the markets due to the delay in loading orders because of the weather conditions. The end users are expected to accept the increases in product prices as same are supported by raw material prices.