The business activity in the European HRC market remains mainly focused on the domestic segment where trade has been at moderate levels. In Italy some lower bids have been seen for August production, in line with the talk in the market regarding ArcelorMittal seeking to increase its prices across Europe. “I don’t see them [local mills] increasing production, so, once supply is down, they’ll push for the best they can get,” a source told SteelOrbis. The EU’s interest in imports has remained low due to the risks connected to the quota uncertainty and CBAM fees. “It is really quiet these days. Traders find it very simple - not offering anything right now because there is no market, so no need to waste time and efforts. Simply better to wait for the new tariffs,” another source opined.
In the southern part of the EU, particularly in Italy, local mills’ HRC offers have been mainly reported at €680-690/mt and up to €700/mt ex-works with the workable levels seen at €670-680/mt ex-works. However, some of the sources have reported some bids for August production at €660-670/mt delivered, which are considered speculative now. In Spain, the official price levels have been reported at up to €720-730/mt ex-works but discounts are considered quite possible.
In the northern part of Europe, official price levels from the mills have been reported at €690-704/mt ex-works, while the workable levels are estimated at €680-700/mt ex-works still, in line with last week.
Some of the sources report ArcelorMittal has started voicing the intention to increase prices by €20/mt in July and €50/mt in August. “The question is more the price levels they have in mind; the increase itself is a regular issue. Everyone would like to increase since we have been dropping [prices] for a month now,” a source told SteelOrbis. “Once old stock is gone, replacement cost is going to increase significantly. And with very little import offers around, EU mills should increase in August at the latest,” another source said.
Import business activity has been quite slack lately as not many are willing to take the risks connected with the unclear quotas. The latest HRC offers from Algeria stood at €720-730/mt DDP, down €10/mt on the lower end over the past week, while Turkey has maintained the level of €690/mt DDP. Most of the DDP HRC offers from Asia have remained at high levels with sideways movements - €730/mt from South Korea, €720/mt from Taiwan and €750/mt from Japan. The indications from a Vietnamese mill remained the lowest at €690/mt DDP.
In the CFR import HRC segment in Europe, the offers from Turkey have firmed up to €605-615/mt CFR, €5/mt on the lower end over the past week. The indications from India have been generally stable at $680-685/mt (€585-590/mt) CFR, with no takers seen. According to some sources, a deal at $650/mt CFR for a decent volume has been concluded lately to Spain.
