The Hindu Business Line : Europe, US see rebound in steel prices

Mumbai, Sept 28 Europe and the US have witnessed a rebound in steel prices with China unexpectedly faulting on the prices as it records a moderate slowdown, going by the data made available by the World Steel Dynamics Steel Benchmarker.

Hot rolled coil (HRC) prices are up in the US and Europe moderately in the range of $5-10 a tonne whereas cold rolled coil (CRC) prices are up in the range of $10-15 a tonne in the two markets, said Mr Vishal Chandak, senior analyst, Emkay Share and Stock Brokers Ltd.

The Chinese market, however, witnessed a decline of $10 a tonne in HRC prices after witnessing a rally of $85 over the last six weeks. CRC prices in China are, however, up by $7 a tonne, he said.

US- prices up

HRC prices in US started strengthening over the last three fortnights with consecutive gains. The HRC prices in the US markets are now quoted at an average of $576 compared to $572 last fortnight, representing a gain of 0.7 per cent The prices gained $16 since $560 reported on Aug 13.

CRC prices have increased by $10 a tonne in the last fortnight with a cumulative gain of $23 over the last one-and-half months.

Europe prices

Average HRC prices in Western Europe have reportedly increased by $10 a tonne to $680 in the last fortnight. Average CRC prices have also increased by $15 to $770, a gain of two per cent over the last fortnight. HRC prices in Western Europe increased by $17 over the last 2 months with CRC prices recording a gain of $18 a tonne in the similar period.

China prices dip

Average domestic HRC prices in China are now $477 a tonne, down by $10, compared to last fortnight. However, CRC prices continue to remain strong with an increase of $7 at $575.

Indian cos benefit

Mr Chandak says the biggest beneficiary of the current cycle was Tata Steel, followed by JSW because of its acquisition of Jindal Saw, which has a plate mill and a pipe mill at Bayton. JSW plans to ship right sized slabs as to the US operations. SAIL will also benefit as domestic prices are benchmarked on the landed import price.