This week, the European hot rolled coil (HRC) market has remained largely unchanged, with domestic prices stable in both northern Europe and Italy. Steelmakers have continued to pitch offers roughly €30/mt above the levels buyers deem acceptable, underlining the persistent gap between asking and transaction prices. Import activity has remained muted, as uncertainty surrounding CBAM obligations and quota restrictions have kept buyers cautious.
Specifically, local mills in norther Europe are reported to be targeting €600-630/mt ex-works for new orders for October and November deliveries, mainly the same as last week, while offers from Italian mills have remained at €570-580/mt ex-works for October-delivery HRC. However, the tradable price level has remained at €570-580/mt ex-works levels in the north and at €540-550/mt ex-works in Italy, with no sizable deals reported this week.
In the meantime, the import market has remained subdued as uncertainty over CBAM rules and limited quota availability curb purchasing appetites. Industry participants have reported that most buyers prefer to delay orders until the outlook becomes clearer. Indicative offers for imported HRC have been reported in the range of €500-540/mt CFR, depending on the origin, up by €15/mt on the lower end of the range week on week.
The lower end the of the range corresponds to ex-Indonesia HRC offers in southern Europe which have been voiced at €500-510/mt CFR level, compared to deal prices at €485/mt CFR last week and offers at €490/mt CFR. Meanwhile, the higher end of the range corresponds to offers for ex-Turkey HRC at €520-540/mt CFR, duty included, the same as last week. However, sources indicated that ex-Turkey HRC deals are improbable in the near term, as Turkey has already used up its EU HRC import quota for the third quarter.
Offers for ex-India HRC have remained at $610/mt CFR, which translates to around €515/mt for November shipment, though some sources have also reported higher ex-India HRC offers at €520-530/mt CFR.
$1 = €0.85