UNITED KINGDOM June 03 2016 11:21 AM
LONDON (Scrap Register): Northern Europe hot rolled cold (HRC) steel prices gained further by €14 a ton week-on-week to €416 per ton in the week ended May 13, as per the latest figures released by The Steel Index.
Asking prices from North European producers continued to increase this week with some mills heard offering HR coil as high as €450 a ton.
However, this price level is yet to be seen in the spot market, as transactions were mostly concluded in the €410-420 a ton range, taking TSI’s North European index to €416 a ton by the end of the week.
Reports about fire at ThyssenKrupp’s plant in Bochum and possible supply disruptions in the region sparked speculations that mills would be soon introducing further price hikes.
Trading activity in the South of Europe was robust, as buyers placed orders with domestic mills in the absence of import alternatives and HRC prices remained close to the €420 a ton mark.
With negotiations for H2 2016 automotive contracts approaching, steel producers seem to be determined to keep European prices on an upward track, while buyers have one eye on events in Asia where steel and raw materials prices continue to tumble.
