December has generated some heat in the European flat steel market with mill in major steel producing countries hiking price by EUR 10 per tonne to EUR 20 per tonne. Combination of supply driven and bid to eke out better price in Q1 2013 contracts by the suppliers has given force in this bid.
Presently mills are offering HRC at EUR 480 per tonne which was only EUR 450 per tonne to EUR 460 per tonne till a fortnight ago.
Scuttled supply by the Ilva catastrophe supposedly holding on to 150,000 tonnes finished products and bid by the mills in Germany to gain hike of EUR 15 per tonne to EUR 20 per tonne in Q1 2013 from the auto makers have created ripples in the market .
However market remained in vice like grip of diffidence with traders and stockiest still sticking to need based buying amidst low inventory and tight credit.
Mills are also gullible to giving discount for immediate booking in HR and CR up to EUR 10 per tonne to EUR 20 per tonne depending on the quantity. Import from Turkey, China, Russia and India has increased in Italy with service centers gasping for material.
Chinese and Indian mills have raised offers by EUR 5 per tonne to EUR 10 per tonne recently but weakening Euro has diluted the advantage. In totality market continues to be ambiguous with most of the players groping for stability which remains elusive.
