The EU hot rolled coil (HRC) market has remained in its slow summer phase, marked by plant stoppages and maintenance works. Trading activity has been muted over the past two weeks in both the northern and southern regions, with many participants expected to resume operations only toward the end of the month. At the same time, local mills and buyers continue to hold differing views on the market outlook for September. Most mills are still banking on higher prices, while buyers remain doubtful of any significant uptrend given the anticipated slow pace of consumption recovery.
Compared to early August, tradable prices have remained relatively stable ranging at €530-540/mt ex-works in Italy and at €560-580/mt ex-works in northern Europe. However, indicative offers from local mills both in Italy and northern Europe have increased by around €10-30/mt since early August, reaching around €580/mt ex-works in Italy and €610/mt ex-works in the north. At the same time, discussions about further hikes targeting October and November deliveries to around €630/mt ex-works in northern Europe have been circulating this week.
As for the import segment, business activity has been close to zero over the past two weeks, with indictive offers standing at €475-520/mt CFR, depending on the supplier, up by €5-20/mt since early August.
According to sources, only two deals for around 30,000-50,000 mt of ex-Malaysia HRC are reported to have been done to Italy at the end of last week at around $555/mt CFR and $560/mt CFR, which translate to around €476/mt CFR and €480/mt CFR, respectively.
Offers for ex-Indonesia HRC have been estimated at €475/mt CFR, the same as two weeks ago, with no deals reported so far. Offers for ex-India HRC have been voiced at around €515-520/mt CFR, while indicative offers for ex-Turkey HRC have settled at €520/mt CFR, duty included.
$1 = €0.86
