Price pressure on UK HRC producers

Wednesday, 12 February 2014 17:56:37 (GMT+3)   |   Istanbul
       

Market sources state that hot rolled coil (HRC) demand in the UK has remained weak, while over the past week prices have softened by £5/mt ($8/mt) in the domestic market and moved down by £5-10/mt ($8-17/mt) in the import market. Most market players are not happy with the recent payment policy revision, which has put pressure on mills' prices. On the other hand, regardless of demand levels, the price hikes announced by local mills previously in the UK market have been rescinded, impacting market sentiments negatively. Buyers in the UK market do not want to conclude deals in excess of their needs at the moment.   
 
HRC prices in the local UK market can be found at £420/mt ($693/mt) ex-works for March production and excluding VAT, while local hot rolled sheet (HRS) prices are at £455-470/mt ($751-756/mt) ex-works, excluding VAT and for prompt shipments. In addition, Indian origin HRC offers stand at £405-410/mt ($668-677/mt) +VAT ex-warehouse for prompt shipments.
 
Meanwhile, HRC offers from other regions of Europe to the UK stand at £410-415/mt ($677-685/mt) + VAT CIF for shipments in April. In addition, May-June delivery HRC offers from Iran and Turkey stand at £410-415/mt ($677-685/mt) CIF and at £420-425/mt ($693-701/mt) CIF, both exclude VAT.
 
£1 = $1.65

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