European hot rolled coil (HRC) prices have shown signs of a gradual firming over the past week, supported by mills’ stable offers and slightly higher tradable levels, while most foreign suppliers have been targeting higher prices for the next round of sales. However, imports have remained risky and relatively slow due to CBAM-related costs, while, according to sources, mills’ recent price increases have been driven not by stronger regional demand but rather by tighter import availability. Meanwhile, small-volume deals on DDP basis have been reported through traders at price levels around €10-20/mt below official offer prices.
Specifically, in the local EU market, while offers from ArcelorMittal for April delivery HRC have remained at €700/mt delivered, or around €685/mt ex-works, the target prices for April delivery from other mills in northern Europe have been voiced at €670-685/mt ex-works, mainly the same as last week. However, the tradable price levels have been estimated at €650-660/mt ex-works, up by €10/mt week on week.
In Italy, mills have been targeting €660-680/mt ex-works mainly for April delivery, mostly the same as last week, while the tradable price level is estimated at €645/mt ex-works, up by €10/mt on the lower end of the range week on week.
“Local mills definitely have €650/mt base ex-works as a working level, and it seems everyone is operating with April deliveries, some already for May,” a market insider told SteelOrbis, adding, “I still don’t see €700/mt delivered (i.e., €680 ex-works), but it looks like €660-680/mt ex-works will most likely consolidate.”
Meanwhile, in the import segment, indicative offer prices for HRC have settled at €505-565/mt CFR, versus €510-547/mt CFR last week. The lower end of the range corresponds to ex-India HRC offers at $600-625/mt CFR, compared to $600/mt CFR last week, which translates to €505-525/mt CFR southern Europe. Besides, offers for ex-South Korea HRC have been voiced at around $670/mt CFR Antwerp, which translates to around €565/mt CFR for April shipment.
HRC import offers including CBAM costs on DDP basis have been voiced at €620-640/mt levels, depending on the supplier, up by €5/mt week on week, though lower offers for ex-India HRC are still voiced at €600/mt DDP, according to sources.
Furthermore, following numerous deals signed for ex-Turkey HRC at around €520-525/mt CFR during the past weeks, this week offers for ex-Turkey HRC have been estimated at €525-540/mt CFR, duty included, up by €5-10/mt week on week, and at around €630/mt DDP including CBAM costs.
“We heard several deals though traders have been signed at around $700/mt DDP, or around €590/mt DDP level for ex-India and ex-Turkey HRC this week,” a local trader told SteelOrbis.
In addition, most offers for ex-Asia HRC on DDP basis, including CBAM, through traders have been voiced at €620-630/mt DDP, mainly the same as last week, while offers for ex-Algeria HRC have settled at €620-640/mt DDP compared to €615-620/mt DDP last week.
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