European steel market has played a stellar role in the revival of fortunes for global flat product prices after the winter holidays. The rally in prices of flat products had made the coffers of European mills ringing in its maiden rally since the onset of recession. But European steel market last week was characterized by contradictory signs with prices going in opposite direction, depending on products and origins.

The scrap price fall has also taken down the price of long products, although the decrease has been so far marginal ie EUR 10 per tonne to EUR 20 per tonne depending on category.

Flat products on the contrary have continued to place successive price increases notwithstanding the different signs of growing difficulties in implementing the increases. Material is generally lacking and many customers are finding very difficult time in booking the necessary quantities.

Specifically CR is quite short in the market with the consequence that prices have jumped to levels same or in some cases even higher than HDG. This last continues to remain the relatively most depressed product among flat ones.

It is reported that Marcegaglia is very short in CRC and in 1000 mm width across of all products HRPO, CR and HDG as HRC suppliers are not giving enough quantities and in some cases, like Chinese Mills, are applying extra for such width. Fos sur Mer the main ArcelorMittal steel Mill in France, specialized in supplying HRC for re rolling to ArcelorMittal European system, is said to have some technical problems that will lead to a stop for an undetermined period of time.

Thus CR has reached quotations that are in some cased by passing those of HDG. Last offers from both neighboring and abroad Mills are approaching or even above the EUR 700 per tonne CFR FO level, while profilers using HDG for gyps cartoon profiles are not available to pay more than EUR 670 per tonne to EUR 680 per tonne for thickness 0.55mm to 0.60 mm with Z140 coating.

HRP have finally taken a good jump as in all three market quotations of domestic producers have largely by passed the EUR 600 per tonne for base parity mark and are not finding any difficulty in booking orders at EUR 650 per tonne and in case of orders booked directly with end users even EUR 680 per tonne.

Consumption and demand seems recovered to decent levels in all HRP consuming sectors, including carpentries that during 2009 and till beginning of 2010 were suffering of a tremendous lack of orders and job. During last days, main HRP producers in Italy have been able to increase base price from a previous EUR 620 per tonne to EUR 650 per tonne and in some cases of sales to end users even EUR 680 per tonne.

But the Southern countries of Italy and Spain have shown vulnerability off late. The march of successive weekly increment has been stalled with a proclivity for marginal reduction. Buyers have been quick to sense this fading sentiment. This changed tact is evident with the emergence of several distressed cargo remnants from breached contracts, expired LC and traders with position cargo eager to liquidate it.

It is learnt that a lot of HRC from an Ukrainian Mill is now offered at USD 690 per tonne CFR FO Mediterranean port which is a significant climb down from the minimum price of USD 710 per tonne to USD 720 per tonne FOB declared early this week. Domestic mills like Riva in Italy have failed to evoke response with new floor price of EUR 620 per tonne base with no takers as most of the distributors are opting to withhold purchase in this changed scenario.

The general economic situation of EU with the recent crisis in Greece likely to deepen by the impending danger of involvement of other countries such as Portugal and Spain are pushing all operators to an extremely conservative attitude. In any case the overall situation is not yet clear as many operators are still strongly convinced that a reshuffling with price trimmed by several point percentage will be unavoidable in the next period.

Next week we'll see whether or not Turkish mills will decide to come back in the market for restarting buying scrap and whether or not such move will be enough to take scrap price and all long sector up to past levels.

We'll also see if the shaking signs detected during this week are just a temporary storm or the beginning of a massive earthquake.

1. Plates

HRP
S 235 / S275JR
5-20x2000

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

2. Hot Rolled Coils

HRC
S235JR
2-12x1000-1500

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

3. Cold Rolled coils

CRC
DC 01
0.60 Avx1250

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

4. Hot Dipped Galvanized

HDG
DX 51 D / Z100-120 / AS
0.55 - 0.57x AW

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

5. Merchant bars

Merchant bars (B)
S235JR
5 to 150 mm

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

6. IPN / UPN

IPN / UPN (B)
S235JR
50 to 400 mm

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

7. HEA/B/M

HEA/B/M (E)
S235JR
100 to 600 mm

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

89. De-Bars

De-Bars (E)
FE500
6 to 40 mm

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

9. WRC Mesh

WR Mesh (E)
S235JR
5.5 to 16 mm

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

10. WRC Drawing

WR Drawing (E)
SAE 1006/8
5.5 to 16 mm

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne
(E) - Effective
(B) - Base

CFR Antwerp

Change is on April 30th 2010 as compared to April 23rd 2010
In EUR per tonne

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(Sourced from www.steelprices-europe.com)