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

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

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

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

Change is on November 13th as compared to November 6th 2009
In EUR per tonne

5. CFR Antwerp- Steadfast prices

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

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)

Steel prices during last week have substantially kept same levels of pervious week with reductions mainly touching HDG and HRC in North Europe.

The situation is not clear at all, with buyers still insisting on prices well below actual available offers. The demand seems gradually taking ground but price levels are extremely tight.

More than following the market trend, buyers are basing their bids on the expected retail prices for which is almost impossible to obtain increases. Financing and insurances are still keeping same very conservative attitude as per last months and payment delays, defaults and bankruptcies are sensibly increasing.

All in all, the scenario remains the same of last period but with a generalized shared feeling that, unless of sudden new negative elements, the situation will worsen.

Several Mills have again revised their production plans with substantial cutting and reduction to cope with the always weak demand. Others, as de bars and merchant bars producers have on the contrary pushed prices down as much as possible to keep production and productivity at higher levels.

Offers of materials are available without any particular difficulty, with major Trading starting to take "positions", betting on a possible next market and price improvement. Mainly on HRC, some operator has decided to book contracts for important quantities with shipment January onwards.

Now the main offers available in the market for HRC are the following.

1. Mobarakeh through VAIT - 385
2. Mobarakeh through Bally - 365
3. VAIT (Own production) - 410
4. Tiangang (new facility) - 370
5. Beitai through Corus - 365
6. Anyang through ThyssenKrupp Trading - 365
7. Corus UK/NL - 370 DDP
8. Riva - 380 DDP
9. ArcelorMittal - 390 DDP
10. Ilyich - 340 to 345 with LC at sight

All prices in EUR per tonne CFR FO one EU disport, minimum quantity 5000 tonnes basis 2 mm with extra to be negotiated, payment LC at 90 days from BL date

1. Plates - Bulks under buyers pressure

HRP
S 235 / S275JR
5-20x2000

Change is on November 6th as compared to October 30th 2009
In EUR per tonne.

2. Hot Rolled Coils - Token improvement on hope of gains

HRC
S235JR
2-12x1000-1500

Change is on November 6th as compared to October 30th 2009
In EUR per tonne

3. Cold Rolled coils - Impasse continues

CRC
DC 01
0.60 Avx1250

Change is on November 6th as compared to October 30th 2009
In EUR per tonne

4. Hot Dipped Galvanized - Continuity of Chinese whirlwind

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

Change is on November 6th as compared to October 30th 2009
In EUR per tonne

5. CFR Antwerp - No let up

Change is on November 6th as compared to October 30th 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

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)

Week 44 has seen basically no changes compared with the previous one. Transactions have been very modest with buyers generally bidding at levels un reachable by suppliers.

Demand is remaining low and the recent production capacity increase, due to re lining of several BF, are not helping a price recovery.

More than negotiating based on market price and trend, customers are bidding based on their expected retail prices which, during last period, were determined not by the market price but by the extremely low demand. Thus the spread between expectations and offers is remaining quite wide and unlikely to be settled during the short period.

More and more customers, in order to acquire material at affordable prices, are looking for secondary, of course mainly for hot products. We have got information of an Italian SSC that was able to book some secondary HRP quantity from East Europe at a price of EUR 350 per tonne CIFFO Italian port.

On the other hand, Ukrainian Mills are quoting, for prime HRP to be produced for shipment December, prices ranging between EUR 360 per tonne to EUR 380 per tonne CIFFO Mediterranean port, finding in any case not so many interests.

The price decrease going on both in Indian and Chinese domestic markets are putting pressure on the traditional suppliers of those markets such as the Russian and Ukrainian Mills that are finding growing problems in filling up their order books.

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(Sourced from www.steelprices-europe.com)

The expectation of buyers for lower prices from Chinese sources has been frustrated as all Mills and Traders have offered conditions well above desired levels. This is due to a temporary price increase in the domestic Chinese market and in a simultaneous increase of freights by USD 20 to 25 per tonne.

After the rather good performance of September, when customers were placing orders on wave of low stock levels an extended period of stagnation seems to be on the offing as demand remains sluggish. Retail prices remains under pressure and financing is costly adding to the gloom. Buyers are decided in buying only when conditions are fully matching their expectations .Since stock levels are still not critical, they rather prefer to drop and wait.

Traders and Mills of Ukraine that have been able to book orders of HRC and HRP to South Europe at levels between Euro 350 -370 per tonne for HRC and Euro 360 - 370 per tonne for HRP, on CFR FO terms partially matching buyers expectation.

The happenings in November would be largely dependant on the movements in China, although December is expected to be somewhat better in South Europe owing to stock reshuffling and purchase for fiscal reasons.

1. Plates

HRP
S 235 / S275JR
5-20x2000

Change is on October 23rd as compared to October 16th 2009
In EUR per tonne

2. Hot Rolled Coils

HRC
S235JR
2-12x1000-1500

Change is on October 23rd as compared to October 16th 2009
In EUR per tonne

3. Cold Rolled coils

CRC
DC 01
0.60 Avx1250

Change is on October 23rd as compared to October 16th 2009
In EUR per tonne

4. Hot Dipped Galvanized

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

Change is on October 23rd as compared to October 16th 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

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)