European hot rolled coil (HRC) prices have remained under pressure over the past week, with market participants pushing back against higher July-delivery offers, which have been widely viewed as unrealistic at €750/mt delivered and above. Buyers have continued to report ample availability, supported by high stock levels and a steady flow of imports, limiting any immediate upside. While some market shifts are anticipated from July, sentiment remains cautious, with little scope seen for significant price increases in the near term.
More specifically, HRC prices from mills in northern Europe have been reported at €720-730/mt ex-works for June delivery, the same as last week, with a number of mills still targeting higher offers for July delivery. At the same time, the tradable price levels have settled at €700-720/mt ex-works, the same as last week.
In Italy, offers from mills have remained at €700-710/mt ex-works for June delivery. Meanwhile, the tradable price levels are estimated at €690-700/mt ex-works, the same as last week.
“Although mills are still planning to push for around €750/mt ex-works for July delivery, this level is totally unworkable,” a market participant told SteelOrbis, noting that tradable prices in both northern Europe and Italy remain closer to €700/mt ex-works.
As for the import segment, indicative offer prices for HRC have remained at €600-690/mt CFR, with the lower end of the range corresponding to indicative offers from India. However, according to sources, an offer at a lower level has been reported this week for ex-Indonesia HRC at €580/mt CFR for July shipment.
“Import prices are currently stable, but, with very limited import volumes, we expect an increase ahead of the new quota period,” a market source said.
At the same time, offers for via traders on DDP basis, including CBAM-related costs, have been reported at €700-730/mt DDP southern Europe, with offers for ex-Algeria HRC heard at €725/mt DDP, the same as last week.
Meanwhile, according to market sources, while offers for ex-Turkey HRC have been estimated at around €620/mt CFR duty paid, excluding CBAM, Turkish origin material has also been offered by Chinese traders at around €700/mt DDP. In addition, offers for ex-Taiwan HRC have been heard at around €730/mt DDP southern Europe, the same as last week.