Transaction activities have remained weak in the European HRC market in the past week, both because most buyers have sufficient stocks for the moment and as market players are waiting for the situation to become clearer price-wise. As reported previously, demand from the automotive industry has been lower than expected in past weeks due to the global shortage of semiconductor chips. This, coupled with some plants having restarted production around Europe, has increased the availability of material in the spot market. On the bright side, a recovery in demand is expected around November, when distributors will need to restock, while logistic issues may restrain supply to a certain extent.
Compared to September 28, SteelOrbis' reference prices for HRC in the EU market have decreased from €960-1,070/mt to €940-1,050/mt, both ex-works. More specifically, achievable spot prices are mostly in the €940-960/mt range in the Italian market and at €1,000-1,050/mt in northern Europe, all ex-works. According to sources, Italian mills are still offering material for December deliveries, while other suppliers' lead times are in the first months of 2022.
As for the import market, offers from India, Turkey and Japan are at around €800-850/mt CFR southern Europe according to sources (duties included). As reported previously, countries like India immediately exhausted their HRC quota (169,717 mt) on the first day of the fourth quarter period of the EU safeguard. Market players in general are now in the process of calculating the volumes that will be hit by duty of up to 25 percent.