Steel makers have started raising list prices even as spot prices were at a 9-month low in March, according to a monthly report from The Steel Index (TSI).

In Northern Europe, producers had to adjust their asking price downwards by to 430-440 euros per ton. In Souther Europe too, producers were competing to cut prices to face the threat of imports and attract new orders.

Bearish sentiments were prevailing in Asian region. In India, a strong Rupee and weakening China offers dampened the prices. TSI’s weekly HR coil index (DDP, Mumbai) slipped almost –2% (Rs870/t, 4-week change) to close at Rs44,740/t in the final week. In Turkey, market was bearish and trading activity almost came to a halt in the week preceding municipal elections.

Chinese HR coil export prices (FOB China port) to Asia fell to a eight-month low in March as large falls in iron ore prices fed through to the finished steel market. TSI’s Chinese exports to Asia index for HR coil fell US$11/tonne (-2.1%, 4WC) to US$513/t. Despite steel producers’ attempts to hold offers around the US$520/t range, transactions con-cluded several dollars lower.

"ArcelorMittal has announced a hike in coil prices by €20/tonne for June shipment with the target level for HRC reportedly between €460-470/t. Although this announcement may act to prevent further price erosion, buyers may find it difficult to absorb an increase so soon after a downward price correction. Service centers remain well stocked as we enter Q2, and many many appear reluctant to commit to further large orders in the absence of real end-user demand. For now, pricing power remains with purchasers.