The increases are in line with the increase in hot roll contracts in Europe. However, pipe prices continue to remain behind HRC values due to the uncertainty prevailing in the market.
July pipe sales are reported to be higher than the June average despite the challenging market.
European HRC producers are increasing values and in Italy are offering €700/t base ex-works or delivered prices depending on mill, customer and volume. Contracts have not reached this level yet as steel producers have also been gradually increasing their prices considering the fragility in the market.
The target of reaching €35 for pipe price discounts is based on ex-works HRC prices of €650/t. According to sources, if domestic values continue to increase in the next few days, re-rollers will need to target a €30 discount before the sector closes for August cuts.
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