Prices for steel hot-rolled coil in the European market rose on Monday December 5, with mills looking to achieve higher prices before they start their Christmas holiday stoppages, Fastmarkets heard.Demand has improved and this has resulted in the market accepting the prices increases, according to market sources.
But whether the increased prices can be maintained during a period of market volatility is uncertain, Fastmarkets heard.
Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe at €632.50 ($666.59) per tonne on Monday, up by €13.75 from €618.75 on December 2.
The latest calculation of the index was up by €13.75 week on week, but down by €15.00 per tonne month on month.
In the week to December 2, sources said the price floor had been reached and the downtrend in prices would soon reverse. But demand remained flat this week, leaving the market pessimistic about whether market conditions would support higher prices.
Rising consumption levels have been reported by market participants, however.
“The price trend is upward,” one buyer source told Fastmarkets. “I hear more and more customers are buying now.”
Buyers’ estimates of workable prices were reported at €620-650 per tonne ex-works.
Fastmarkets’ calculation of its daily steel HRC index, domestic, exw Italy was €633.33 per tonne on Monday, up by €18.33 per tonne from €615.00 per tonne on Friday.
The latest calculation of the Italian index was up by €37.08 per tonne week on week, but down by €31.67 per tonne month on month.
A similar movement in prices occurred in the Italian HRC market, sources said, adding that mills may continue to seek higher prices until they close for the Christmas holidays.
Published by: India-Inés Levy