Although this week the leading regional producer ArcelorMittal has decided to push its domestic hot rolled coils (HRC) prices across the EU up by around €20/mt from last month, other European mills have not been in a hurry to follow suit, maintaining their HRC prices mainly stable or only increasing them slightly. Thus, domestic prices for HRC in Europe have showed only a slight increase this week. Meanwhile, despite ongoing challenges in the import market due to various regional restrictions, some signs of renewed activity have emerged, supported by fresh deals for HRC from Indonesia.
Specifically, in the local EU market, ArcelorMittal has announced its new target for HRC at €700/mt ex-works, delivered in northern Europe, for mainly June deliveries, up €20/mt from the previous official levels announced in March. According to sources, ArcelorMittal’s offers in southern Europe have been maintained stable so far, at €660/mt ex-works.
Meanwhile offers from other European mills have been voiced at €650-670/mt ex-works for May-June delivery in northern Europe, up by €10/mt week on week, and at €630-650/mt ex-works for delivery in May in Italy, against €620-650/mt ex-works last week. However, the current tradable price level in northern Europe has been estimated at €640-650/mt ex-works, up by €10/mt on the lower end of the range week on week. Besides, workable prices in Italy have been reported at €620-630/mt ex-works, up by €10/mt over the past week.
Steel production in Europe continues to run at relatively low levels due to persistent operational issues at local mills, sources say. Market participants often report delivery delays, while producers remain firm on their pricing. “In some instances, mills have even suggested that buyers look elsewhere if they are unwilling to accept current prices. However, with few competitive alternatives available, customers are often left with limited options,” a market insider told SteelOrbis.
In the import segment, most offers have settled at €560-610/mt CFR, depending on the supplier, the same as last week. According to market insiders, a deal for at least 30,000 mt of ex-Indonesia HRC is reported to have been signed at $620/mt CFR Antwerp, which translates to around €560/mt CFR, though offers for ex-Indonesia HRC through traders in Spain have been reported at as high as €590/mt CFR. Besides, offers for ex-India HRC have been voiced at $630/mt CFR, or around €570/mt CFR, the same as last week.
Furthermore, offers for ex-Japan HRC have been heard at €635/mt CFR southern Europe, including duty, though no deals have been heard so far. Offers for ex-Turkey HRC have been estimated at €610/mt CFR, including duty, the same as last week.
It is worth mentioning that on the first day of the new EU quota period from April 1 to June 30, some of the import quotas for certain steel products, including HRC originating from “other countries”, have been exhausted.
