Upward trend seen in European flat rolled market

The flat rolled market is strong in southern Europe where import prices are on the rise. SteelOrbis has learned that Italian mills ILVA and Marcegaglia have also increased their prices in the local market. Buyers, who have long refused to accept the increase in prices, are now finally beginning to accept the new levels at €450-460/mt CIF FO, including 90 days deferred payment for hot rolled coils. We can say that HRC is in a better situation than CRC. Demand for plate is also strengthening slowly. Market experts expect that import offers for hot rolled plates will soon climb further due to availability shortage. Domestic price levels in Italy are at the following levels:

HRC:    €455-460/mt ($587-594/mt) ex-works
CRC:    €520/ mt ($671/mt) ex-works
HDG:    €605/ mt ($781/mt) ex-works
HRP:    €600-620/mt ($775-801/mt) ex-works 

Ukrainian steelmaker Ilyich has increased its HRC price up to $480/mt FOB level for February. Moreover, the price of Bulgarian steelmaker Kremikovtzi has increased to a range of $535-540/mt FOB for HRC. In particular, buyers of Ilyich materials are not waiting for the prices to be announced by Russian steelmaker Severstal. It is said that Ilyich may increase its HRC price up to $500/mt FOB level in February, if a strong signal is received from the Russian side. Following the sharp increases in the flat rolled markets, mills in the Eastern Europe are said to have cancelled their contracts. Following these rumors in the market, a mood of uneasiness may emerge for the materials (the price of bookings were approximately $30-35/mt lower than the levels today) booked by the traders 2-3 weeks ago.