SteelOrbis has been informed that the local price levels for ex-Turkey HRS in the UK market are standing at £435/mt ($651/mt) ex-warehouse, excluding VAT, while UK mills are offering HRS to the local market at £455/mt ($681/mt) delivered to customer, excluding VAT. All prices are for 60-day deferred payment, on actual weight basis. Meanwhile, ex-China HRS in the UK market is standing at £425/mt ($636/mt) delivered to customer, excluding VAT, also for 60-day deferred payment.
Demand for flats product has this week been moving horizontally in the UK market. Buyers have not returned to the market yet, while the tightening of bank credits has been creating difficulties as regards payment terms. However, it is also observed that the price decline movement has lost speed and has now entered a flat trend. On the other hand, it should be noted that the movement in question is not demand-driven, but rather cost-driven.
Flats traders in the UK have told SteelOrbis that there has been an average tightening of 70 percent in their trade volume in November compared to the same month last year. It is also reported that traders have been buying and selling just small amounts of tonnages (below their needs) due to certain market risks, i.e., deferment, credits. Thus, they have been minimizing these kinds of risks.
It is also reported that things have really changed since the HRS deals concluded at the price levels of £625-650/mt in early September. For the time being, the same material at price levels of around €425/mt is not being met with acceptance. While HRS price levels for stocks in this country have this week fallen by an average of £5/mt compared to last week, ex-Turkey import material prices have remained unchanged over the same period.
£1 = US$ 1.4965