European HRC producers have continued to push for higher offer levels for January delivery coils this week, while the gap between buyers’ price ideas and mills’ target levels has remained wide, exceeding €40-50/mt. On the import side, despite persistent obstacles related to CBAM compliance and safeguard limitations, EU buyers have kept securing sizable volumes of ex-India HRC at competitive prices, extending the wave of substantial ex-India bookings seen last week.
More specifically, local mills in northern Europe are reported to be targeting €630-650/mt ex-works for new orders for January deliveries. However, according to sources, while the tradable price levels for January delivery coils have been estimated at 610/mt ex-works, workable prices for December arrival are still voiced at lower levels or at around €580-600/mt ex-works, the same as last week. “Market participants have remained skeptical that mills could secure the proposed hikes [€650/mt ex-works], pointing to subdued demand and the availability of comparatively attractive import options, despite associated CBAM uncertainties” a market insider told SteelOrbis.
Meanwhile, in Italy, indicative HRC offers from mills have settled at €620-630/mt for December and January delivery, against €610-615/mt ex-works last week, while the tradable price level for December has remained at €580-585/mt ex-works, the same as last week. "Italian HRC was offered into Germany at €630-640/mt delivered, while buyers were bidding roughly €20/mt below these levels," a market insider said.
The import environment has remained highly constrained as buyers continued to face complex CBAM obligations and tight safeguard quotas, which have hindered purchasing decisions and delivery planning. Still, buyers in Italy and Spain have managed to secure another round of sizable ex-India HRC volumes for the second consecutive week. More specifically, following sizable lots of ex-India material signed at $575-580/mt CFR last week, which translates to around €495-500/mt CFR southern Europe, this week more deals for around 100,000 mt in total are reported to have been signed at $550-580/mt CFR southern Europe, or at around €477-503/mt CFR, without CBAM costs. According to sources, one of the vessels has been booked by an Italian steelmaker at a price close to the lower end of the range for early November shipment, while another cargo has been sold to Spain at the higher end of the range, for shipment also in early November, or by November 15.
Furthermore, talk about another deal for around 25,000-30,000 mt of ex-Indonesia HRC signed at €480/mt CFR, excluding CBAM, has been circulating in the market. Meanwhile, most offers for ex-Indonesia HRC have been voiced at €480-485/mt CFR.
Offers for ex-Malaysia HRC have been also voiced in southern Europe, at €480-490/mt CFR, without CBAM costs, while indicative offers for ex-Turkey HRC have settled at €515-520/mt CFR, duty included, but without CBAM costs.
At the same time, market insiders have reported HRC import offers coming to the region including CBAM costs on DDP basis at €560-580/mt levels, depending on the supplier, which means the spread between domestic target prices and import offers on DDP basis, including CBAM-related costs, has now reached €80-100/mt.