Confusion still reigns in the EU HRC market, where offers are lacking both from domestic producers and foreign suppliers, while prices are expected to hit record highs due to surging energy prices, and the lack of supplies of raw materials, semis and finished steels from the CIS region after Russia's invasion of Ukraine. Mills have not returned to the market yet, except for very rare and small deals at high prices compared to the pre-war levels. Meanwhile, rumors emerged yesterday, March 9, about ArcelorMittal having hiked its HRC price to €1,300/mt ex-works. And although the producer denied such reports, most sources believe European mills will target similar levels. As reported previously, ArcelorMittal had increased its offers by €180/mt to €1,150/mt ex-works on March 1.
Before the invasion of Ukraine by Russia, transaction prices were at €950-1,000/mt in northern Europe and at €870-900/mt in the Italian market, both ex-works. Currently, indicative price levels are reportedly around €1,170-1,220/mt in northern Europe and around €1,050-1,200/mt in the Italian market, both ex-works.
SteelOrbis sources said that buyers may be willing to pay any prices, considering that "Currently, they are more concerned about not being able to get the material they need than about prices," as one trader commented. Meanwhile, the lack of semi-finished steel from Russia and Ukraine, especially slabs for markets like Italy, is expected to cause reductions in production levels, while mills struggle to find alternative sources. In this context, also foreign HRC suppliers have preferred to withdraw their offers to better assess the situation. Import offers are few and far between, and among them this week there have been ex-Japan and ex-Taiwan offers at €1,080/mt CFR EU, and one offer from Slovakia to Italy at €1,070/mt CPT.
India remains one of the main HRC sellers to Europe, given the attractive pricing. Following the deals at $1,050-1,060/mt CFR, the suppliers traded around 20,000 mt at up to $1,090-1,100/mt CFR. However, according to the latest information, the most recent deal from India to the EU was closed at $1,100/mt FOB, most probably for a closer shipment date.