Europe’s flat steel market has been stirred by reports of a new local HRC price increase by leading producer ArcelorMittal, with market sources indicating a rise of around €50/mt compared to its previous adjustment in late January. While the producer has not officially confirmed the move by the time of publication, most market insiders have neither dismissed the information nor verified it, expecting a formal announcement in the coming days. Other European mills are widely anticipated to follow the trend, although many participants question whether the new price level is workable amid weak real demand, with current support seen mainly from limited import availability due to CBAM-related factors and safeguard quota constraints rather than genuine consumption growth.
Specifically, according to sources, this week leading European producer ArcelorMittal has increased its offers for April delivery HRC by around €50/mt to €750/mt delivered or around €730/mt ex-works in northern Europe. At the same time, although most market insiders expect other producers to follow suit, most local HRC prices from mills in northern Europe, mainly for April delivery, are still estimated at €685-700/mt ex-works, the same as last week, while the tradable price level has settled at €650-660/mt ex-works levels.
In Italy, offers from mills are estimated at €660-680/mt ex-works, mainly for April delivery, mostly the same as last week, while the tradable price level is estimated at €640-650/mt ex-works.
Meanwhile, in the import segment, indicative offer prices for HRC have settled at €515-565/mt CFR, versus €505-547/mt CFR last week. The lower end of the range corresponds to ex-India HRC offers at $610-625/mt CFR, compared to $600-625/mt CFR last week, which translates to €515-530/mt CFR southern Europe. According to sources, no new spot transactions have been reported for ex-India HRC this week. However, one of the leading European producers is reported to have secured several large-volume contracts totalling around 100,000-150,000 mt of HRC with its affiliate in India. Market insiders suggest that these purchases may reflect practical necessity but could also be aimed at utilizing the Indian safeguard quota, meaning other importers would face duties. “Concentrating large volumes from a single competitive origin is also seen as limiting opportunities for other market participants,” a market insider said.
HRC import offers including CBAM costs on DDP basis have been voiced at €620-640/mt levels, depending on the supplier, up by €10/mt on the higher end of the range week on week. According to sources, several deals for around 20,000 mt in total for ex-Turkey HRC have been signed through traders at around €630-650/mt DDP this week.
