The last 2 days of week 46 have seen a sudden price increase mainly for HRC and billets.
Particularly billets prices have gained by almost USD 20 per tonne, or at least that was the intention of the suppliers. While buyers are bidding prices of USD 10 per tonne to USD 15 per tonne higher than previous purchases, implicitly recognizing a positive trend. As per market reports, Ukrainian Mills are offering prices of USD 20per tonne higher than previous ones, while other are holding offers in the hope of a further price increase.
Price increase has also touched HRC, as demand is quite strong in terms of quantities, while offers were remaining at same levels as before. Most probably this is the result of a combination of factors, made up by the still reduced production and consumption that has apparently reached new relatively higher levels. Some Russian Mills are said to be fully booked till March 2010, while even the less demanded Ukrainian HRC are already giving shipment dates January 2010 and onwards.
At the same time Chinese Mills have announced an increase of USD 10 per tonne on their HRC FOB prices, bringing the minimum level to about USD 490 for SS 400.
However the general sentiment among buyers and retail operators is that situation is not changed that much, with the basic demand and consumption remaining at poor levels. Our opinion is that, also this new wave of generalized increases will probably end like the previous ones, so with a new dump by end of the year or even before.
As mentioned various times in our previous comments, we will still predict an up and down situation to continue for a long time, most probably till mid of 2010, when general economic situation may finally stabilize, unless of sudden and unpredictable different new crisis. The game, for both suppliers and buyers, is to be able to take the right guess and the right rhythm, so well riding the wild "steel horse".
1. Plates - Firm footing
HRP
S 235 / S275JR
5-20x2000
| Country | Domestic | Import |
| Germany | 0 | 0 |
| Spain | 0 | 5 |
| Italy | 10 | 0 |
Change is on November 13th as compared to November 6th 2009
In EUR per tonne
2. Hot Rolled Coils - Rays of recovery
HRC
S235JR
2-12x1000-1500
| Country | Domestic | Import |
| Germany | 5 | 10 |
| Spain | 0 | 10 |
| Italy | 5 | 10 |
Change is on November 13th as compared to November 6th 2009
In EUR per tonne
3. Cold Rolled coils - Toes the line
CRC
DC 01
0.60 Avx1250
| Country | Domestic | Import |
| Germany | 10 | 10 |
| Spain | 10 | 10 |
| Italy | 10 | 10 |
Change is on November 13th as compared to November 6th 2009
In EUR per tonne
4. Hot Dipped Galvanized - Surprise gains
HDG
DX 51 D / Z100-120 / AS
0.55 - 0.57x AW
| Country | Domestic | Import |
| Germany | 0 | 10 |
| Spain | 5 | 5 |
| Italy | 0 | 10 |
Change is on November 13th as compared to November 6th 2009
In EUR per tonne
5. CFR Antwerp- Steadfast prices
| Product | Grade | Thick mm | Change |
| HRP | S235JR | 10-60x2500 | 0 |
| HRP | S355J2+N | 10-60x2500 | 0 |
| HRC | S235JR | 2-12x1250 | 5 |
| CRC | DC 01 | 0.60 Avx1250 | 10 |
| HDG | DX 51 D/Z 180/NA-C | 0.60 Avx1250 | 0 |
Change is on November 13th as compared to November 6th 2009
In EUR per tonne
All prices are net to the final customer with following payment terms
A. Italy & Spain
1. Domestic prices are EXW or DDP with payment 90 days from delivery
2. Import prices are CIF FO with LC at 90 days from B/L date
B. Germany
1. Domestic prices are EXW or DDP with payment on the 15th of the following month
2. Import prices are CFR FO with open term payment at 30 days from date of arrival
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(Sourced from www.steelprices-europe.com)
