Large UK service centre USP Steels will increase its sheet prices by £50/t, with the first increments effective from 3 February.
The company cited rising hot-rolled coil (HRC) offers and Eurofer's request for the European Commission to cut flat steel import quotas by 50pc as drivers of its increase. Prices could rise "rapidly" once the safeguard changes take place, USP said. Taiwanese mills have already cut their allocations for the UK in expectation of higher EU prices, the company added.
Argus' benchmark northwest EU HRC index rose to €587.25/t ex-works yesterday, up by €29/t since the start of January. The weekly UK HRC assessment has nudged up by £10/t over the same period, to £530/t ddp.
While coil prices have been increasing, largely on the back of perceived supply cuts, end-consumption remains low, which has constrained sheet prices and massively squeezed service centre margins. Service centres still report losing business around £550-560/t ddp West Midlands in some instances, if not slightly below. Several service centres suggest some gaps are starting to appear, especially on higher grades such as S355, where a domestic producer appears to have reduced availability.
EU mill offers, on the whole, have moved up, with prices now around £540-550/t ddp, although some are offering at higher prices.
