Domestic longs demand in the UK remains sluggish against the backdrop of the general election being held today, December 12, and the approach of the holiday period. UK-based buyers are on hold and waiting for the market to gain some clarity after the election. Market sources report that CIS-based sellers are close to exhausting the EU quota set for them and, with the filling of their quota in the short term, Spanish and Italian steel producers are expected to be the key suppliers to the UK.
Local prices for UK rebar are available at GBP 390-400/mt ($513-527/mt) CPT, down GBP 5/mt on the lower end, local wire rod prices are at GBP 415-425/mt ($546-559/mt) CPT, decreasing by GBP 7.5/mt, and local merchant bar prices are standing at GBP 435-445/mt ($573-586/mt) CPT, up GBP 7.5/mt, all compared to late November, SteelOrbis has learned.
Currently, British buyers are adopting a cautious approach to new purchases. Market sources indicate that the British currency has strengthened significantly against both the euro and the US dollar in the last three weeks in anticipation of a victory by the Conservative party. As the domestic currency increases in value, UK customers expect offers from the EU and non-EU suppliers to be lower on sterling basis. However the scrap price increase is causing UK producers to ask for increases. As a result, SteelOrbis has heard that one British producer announce an increase of GBP 15/mt ($20/mt) for all long product prices effective from January 6, 2020. In addition, other European merchant bar mills are also trying to apply a GBP 15/mt ($20/mt) increase in the UK market, but buyers are not interested at present.
GBP 1 = $1.31