European tube discounts are decreasing as most southern European re-rollers push up their prices due to the high cost of hot rolled coil in Europe.

Tube discounts hovered at around 27 to 29 points on average in the first two weeks of January in most European countries. Discounts in most European countries are now at 25 or 26 points, Kallanish hears.

“We managed to recover between 2-3 points in January, the equivalent to a €20-30/tonne ($24.6-37/t) price increase. Our aim is to reach 20 points over the next 4 weeks,” a large re-roller comments. The level of tube orders in Europe in January is said to be “… satisfactory” after a “… complicated” fourth quarter of 2017.

“HRC prices are on a rising trend, the level of imports from third countries remains low and tube makers are struggling to find material. This is causing price tension for the finished product especially because we are purchasing European material at very high prices,” another smaller re-roller says.