Hot rolled coil (HRC) prices are still rising in the EU market, while this week the largest flat steel producer ArcelorMittal has increased its offers by €30/mt to €490/mt in the Italian market and to €530/mt in northern Europe, both ex-works and for November output. Transaction prices have kept increasing in the market in the past week on the back of better demand, the lack of import offers, tight supply, and high iron ore prices. Meanwhile, sources have reported that Italian steelmaker Arvedi has started offering HRC at €470/mt ex-works in the domestic market. According to sources, it is not clear whether ArcelorMittal will obtain the higher prices or not, but it is likely that the latest increase will help the previous hike to be absorbed in the market. What is certain is that HRC transaction prices will keep trending up in the European market in the next few weeks. Some believe that they will reach €500/mt in northern Europe by early October, while they will reach the same level in Italy shortly afterwards.
In the Italian domestic market, HRC base prices have reached €440-460/mt ex-works, versus €430-450/mt level recorded last week. At the same time, prices have increased from €440-460/mt to €450-470/mt in northern Europe, ex-works.