During last days all mills inside and outside EU have pushed down heavily on the accelerator, increasing prices for all steel products.
Particularly Ukraine and Russia have drastically modified their price policy switching from shy increases before and immediately after Xmas holiday to a sudden and strong acceleration.
MMK has issued new HRC prices at levels of EUR 425 per tonne FOB St Petersburg, for destination Germany and North Europe, while is asking for EUR 445 per tonne CFR FO with LC at sight, for deliveries to Mediterranean destination. On the same levels or even higher, are offers from Novolipetsk and Severstal.
On the Ukrainian side, Ilyich Iron and Steel is asking for base price of EUR 405 per tonne to EUR 415 per tonne CFR FO Mediterranean destination for HRP and EUR 385 per tonne or USD 550 per tonne FOB ST Mariupol for HRC.
In Italy Marcegaglia Group has decided an increase of EUR 40 per tonne to EUR 50 per tonne on their HRP price list, thus asking for EUR 450 per tonne to EUR 460 per tonne for base plus extras EXW. Same increases are indicated to be applied by other Italian plate producers although in reality buyers can obtain some good discount on direct negotiations.
Riva Group is still holding from offering HRC, trying to maximize price improvement. Buyers are in a difficult situation, puzzled between booking at the new import prices or waiting for possible better domestic solutions.
In Germany, stock have now reached the lowest level since 1 year and thus buyers are starting to consider buying again on position. As a consequence, domestic mills have announced increase of EUR 40 per tonne for second quarter prices, to be further defined according to market trend and development.
On the other hand situation of demand and consumption has not changed, basically remaining at same levels of before holiday. The general economic situation is still gloomy with unemployment rate increasing everywhere but particularly in Italy and Spain, having reached in the last one a percentage of 20.5% of the working force.
This situation combined with the recently and repeatedly announced production increases of different steel mills is shading doubts about capacity of the new wave of price increases to hold on during next future.