Southern European welded tube re-rollers are set to again decrease their discounts for European markets shortly, market participants tell Kallanish. However, as ArcelorMittal increased coil prices again on Friday, for the third time in March, some re-rollers will be adopting a wait-and-see attitude and pausing their sales.
Re-rollers say the level of demand for welded tube is accelerating in all European countries and requests for material are reaching them from all corners of the continent, including the CIS region.
However, they are experiencing a material shortage that is directly related to the poor availability of hot rolled coil. While deliveries for certain tube grades are lengthening, overall prices have increased by €30/tonne ($35) every week in recent weeks, in line with the hikes for HRC.
From the level of 25-26 points in February, tube discounts are now at 18 points in Germany, France, the Benelux, Italy and Eastern European countries. Starting this week, larger companies are set to decrease discounts further, implementing a 15-point discount policy. One point is equal to €10/t ($11).
Transactions for HRC are at €800-820/t base ex-works in southern Europe and €20/t more in northern European countries. Both buyers and sellers forecast new increases in the coming weeks.
Natalia Capra France
