Long product prices have increased in the UK over the past month. However, mills’ price targets were not widely accepted in the market. Although the stocks are not high, buyers are not rushing to close deals.
Domestic prices for rebar and wire rod in the UK have increased by GBP 15/mt ($20/mt) and the products are currently available at GBP 400-405/mt ($524-531/mt) CPT and GBP 430-440/mt ($563-576/mt) CPT, respectively. Local merchant bar prices have increased by only GBP 5/mt ($7/mt) from the lower end of the range to GBP 440-445/mt ($576-583/mt) CPT, SteelOrbis has learned. Sources report that sellers may provide some GBP 5-10/mt ($7-13/mt) discounts in order to boost demand as business activity is not strong.
Market players are waiting to see some clearer picture in the local market in the UK. Some expect better demand in February, while some foresee a stronger presence of southern EU mills in the British market as the CIS has almost exhausted its quota for sales to Europe, while Turkey is out of the market for a while now. Others are waiting for a more solid outcome of the Brexit talks, SteelOrbis understands.
GBP 1 = $1.31.