Market sources state that flat steel demand in the UK has remained weak so far in the New Year. Import flat steel offers to the UK have moved up by £5-15/mt ($8-25/mt) as compared to the pre-New Year period, while Tata Steel has failed to achieve its previously announced increase of £30/mt ($49/mt) in the market, with local market prices remaining stable over the same period. In the meantime, Tata Steel has changed its payment policy, allowing payment deferment for 30 days after the invoice date. This important change has given rise to the expression of different views in the market. Some market players believe that the mill has taken this decision due to liquidity shortages in the market, while others think that this is a step towards the strengthening of the market prices for the second quarter of the year.
HRC prices in the local UK market can be found at £420/mt ($689/mt) ex-works for March production and excluding VAT.
Meanwhile, HRC offers from other regions of Europe to the UK stand at £410-420/mt ($672-689/mt) + VAT CIF for shipments in the January-April period. In addition, Indian HRC offers stand at £400-405/mt ($656-664/mt) FOT for prompt shipment and excluding VAT.
£1 = $1.64