The situation has remained broadly stable in the European HRC market in the past week, with most European producers targeting higher offers, while tradable prices have indicated some rises as well over the past week. Besides, market sources have reported improved restocking activity in the region for domestic HRC mainly for January deliveries, while import alternatives have been limited and slightly higher in terms of prices this week.
Trade activity is reported to be higher in Europe this week, while the range of achievable levels in the spot market has been at €650-670/mt ex-works, up by €10-20/mt over the past week, with the lower end of the range corresponding to deal prices in southern Europe and with the higher end in northern Europe. More specifically, the tradable level has settled at €650/mt ex-works Italy, versus €630-650/mt ex-works last week, while most Italian mills have been offering their materials at €660/mt ex-works and above, against €650-660/mt ex-works last week. “We heard some Italian mills plan to push for €700/mt ex-works before the new year supported by better restocking,” a market insider told SteelOrbis.
At the same time, in northern Europe, domestic prices have been heard at €680-700/mt ex-works mainly for February delivery, against €680/mt ex-works last week, while talk about higher offers targeted at €720/mt ex-works for March delivery has been circulating in the market.
As for imports, most offers have settled at €630-660/mt CFR, up by €10/mt week on week. However, according to sources, buying activity has been extremely limited due to the high risks of having to pay the EU’s import safeguard duty. “Safeguard quotas for ex-Asia HRC are expected to be exhausted a few days after its renewal on January 1, 2024, and the same situation is expected at the beginning of the second quarter,” a European trader said. Offers for ex-Japan, ex-South Korea and ex-Vietnam HRC have been voiced at €630-640/mt CFR, up by €10/mt week on week. Besides, although several discounted deals for ex-India HRC were reported at €625-630/mt CFR at the beginning of the week, most ex-India HRC offers have settled at €650-655/mt CFR by the end of the week.
Offers for ex-Turkey HRC have been heard at €650-660/mt CFR, including duty, against €650/mt CFR last week. But no deals have been reported so far.