Domestic prices for HRC in Algeria have seen another increase over the past month, following a rather long period of stability. The market players report a decent pace of local sales, along with still quite lively export negotiations, particularly for Europe. Moreover, some expect that the Algerian mill may attempt another domestic HRC price rise within May. In the meantime, ex-China HRC suppliers to Algeria have returned with a significant increase in offers for June-July shipments.
Algeria’s sole HRC producer - Tosyali Algerie - has increased its domestic HRC prices by DZD 2,000/mt over the past two weeks to the current level of DZD 101,500/mt ex-works. Considering the 19 percent VAT and $1 = DZD 132.12, the official offer levels come to around $645/mt ex-works, up by around $12-13/mt over the mentioned period. Moreover, some sources expect the supplier may target another similar or even larger local price increase in the coming weeks.
As regards exports, the official price of the supplier stands at $700/mt FOB for June shipments, but, according to sources, the level depends on the buyer, the volume and the sales destination. “In Europe, the sales opportunities differ quite a lot and depend on buyers’ requirements and how the sides negotiate on CBAM. The Algerian mill fully controls the EU quota for Algeria, has no antidumping duty, and its steel production is quite new, so these are the advantages making some pay higher levels [in the EU],” a market source told SteelOrbis. Some market players reported indications from Algeria at $745-760/mt CFR to southern Europe this week.
China remains the main source of import HRC in Algeria, considering it is the lowest-priced option and, in addition, is able to supply thin gauge material. The indications for thin HRC from China for June-July shipments have been reported at around $630/mt CFR, while the base HRC price has been set at $580-590/mt CFR Djen Djen. Over the past two weeks, the prices for ex-China HRC in Algeria have increased by $15-20/mt.
