North and South European HRC prices fall to new record lows during November

North and South European HRC prices fell to new lows since TSI began coverage, finishing November at €317 a ton and €282 a ton respectively. Although pressure from imports lessened, weak domestic demand continued to drag prices lower, as per the Steel Index.

Coil prices in Northern Europe continued their ascend as TSI's benchmark HRC index hit a new low of €317 a ton by the end of the month.

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Seeing steady declines in spot prices for the last few month, buyers were hesitant to place new orders, slowing down demand. 

Producers reacted by lowering their asking prices, and by the end of November HRC prices stabilised within a wide €310-325 a ton range (depending on mill), with some Eastern European mills offering about €10/t lower. 

Market participants started to question if this level can become a price floor, citing unchanged import offers from China and low inventory levels.

After significant falls in the previous months, Southern European Prepainted Galvanized Steel Coils prices remained steady between €280-290/t for most of November. 

After domestic producers reduced their asking prices close to the level of import offers, the market stabilised, although demand continued to be subdued. In mid-December some of the producers announced that they were going to increase their offers, but spot prices were practically unmoved, and TSI South European HRC index closed at €282 a ton. 

A weak euro continued to keep imports into the region at bay. Chineseorigin HRC imports were heard to be offered at €285-290/t CIF Italy; Iranian-origin material was more competitive, with asking prices reported around €270 a ton CIF Italy.

The US H1 scrap average prices were at $150.170 per long ton, as on 4th January, 2016. The prices held steady upon comparison with the previous week. The prices have remained unchanged for three weeks in a row now.

The average price of US H1 scrap in Pittsburgh, Chicago and Philadelphia was $150.17 per long ton, remaining flat when compared with the previous week. The scrap prices had averaged at $150.17 per long ton since the week ending 21st December, 2015.

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The H1 scrap average price in Pittsburg was $139.50 per long ton.  The average price held steady when compared with the previous week's price. In Chicago the prices averaged at $152.50 per long ton. The prices here too remained unchanged when matched with the previous week. The average price in Philadelphia was $158.50 per long ton. The prices here too remained flat when compared with the week before.

Meantime, the weekly crude steel output dropped further by 1.1% during the week from December 26th to January 2nd. The output declined by 16,000 short tons to 1.440 million short tons during the week.

Source : articlesbase.com