British Tata Steel increased prices for hot-rolled coils (HRC) by 125 pounds per ton and hot-dip galvanized coils by 140-150 pounds per ton in the second quarter, sources told Argus.
Some service centers have received new HRC offers at a price of about 620 pounds per ton per day in the West Midlands, which is higher than the previous level, close to 540-550 pounds per ton per day. Tata is showing staggering growth: according to some buyers, another 40 pounds per ton was announced for May and again for June. Others reported that they had been informed that they did not have an allocation for the supply of HRC for April, and they would pay 125 pounds per ton during May and June, with a gradual increase of about 95 pounds per ton to begin with.
Tata cites rising raw material costs, particularly for slabs and zinc, as well as price differences between the UK and Europe.
Slab prices are becoming increasingly tight as the war between the United States and Iran has halted Iranian exports, while European factories have found it more economical to import semi-finished products rather than increase production and purchase more emissions allowances.
Traders reported that trading activity increased in the coming week, and buyers began to pay more for HRC shares. Some noted that it remains to be seen whether prices for sheets, which were at 540 pounds per ton per day, will follow suit, given continued low demand.
The upcoming quota changes, along with the current risks and cost of shipping from Asia, will push buyers to choose European products more preferentially. sources suggest that deliveries will begin in the coming months.
