Northern European HRC Steel prices gain further to €416 per ton

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.