European hot rolled coil (HRC) prices have shown slight downward adjustments in the northern European market over the past week, while remaining broadly stable in southern Europe. Overall, weak demand fundamentals, sufficient inventories and continued uncertainty regarding upcoming safeguard quota changes continue to weigh on market activity and limit price movement.
In northern Europe, workable price levels have edged down to €680-700/mt ex-works for June-July delivery, compared to tradable levels of €700-710/mt ex-works reported last week. This indicates a modest softening in achievable prices, despite mills maintaining relatively firm offer intentions. Mills, however, are said to have no remaining material available for June and are attempting to consolidate July offers at €715-735/mt ex-works or around €730-750/mt delivered, broadly in line with previously reported target levels, though these higher prices have yet to gain traction in actual transactions.
In Italy, official offers from mills have remained largely stable at around €705/mt ex-works (€720/mt delivered) for June-July delivery, compared to €705-710/mt ex-works for June reported last week. However, achievable transaction levels have declined slightly to €680-700/mt ex-works, down from around €700/mt ex-works previously, reflecting continued pressure from subdued demand and cautious buyer behavior.
In Spain, domestic HRC prices have remained relatively stable, with delivered levels still reported at €710-730/mt, showing no significant change week on week.
In the import segment, activity remains limited and largely unchanged. Offers from South Korea have been heard at around €720/mt DDP Spain, slightly down from €725/mt DDP southern Europe reported last week, though no firm bids have been confirmed. Besides, according to sources, Turkish mills are currently indicating prices at $630-650/mt FOB, which translates to approximately €680-685/mt DDP to southern Europe when including CBAM and antidumping duties. However, buying interest at these levels remains restrained.
“Amid a slight tightening of stocks at European ports, buyers are targeting lower workable levels of around €660-670/mt DDP base,” a European trader told SteelOrbis.
“We also expect Vietnamese producers to release their HRC offers for Europe next week,” another trader said.
Indicative import HRC offer prices to the European Union have remained at around €600-650/mt CFR, with the lower end of the range corresponding to indicative offers from India at €600-615/mt CFR, while Turkish HRC offers have remained stable at approximately €620/mt CFR, in line with previous indications. Other suppliers are said to be largely absent from the market, keeping indicative levels unchanged due to weak buying interest. However, according to sources, ex-Egypt HRC previously booked at €620/mt CFR is reported to have been resold by traders at around €700/mt DDP.
Overall, market sentiment remains cautious, with buyers continuing to delay purchasing decisions ahead of the expected announcement of revised safeguard quotas, anticipated in May. While mills are expected to push for price increases once the new quota structure is clarified, no official announcements have been made so far. Until then, most market participants expect prices to remain largely stable, with only minor fluctuations.
"Market expects that EU mills will announce increases, once the quotas with country structure are released. This should come in May, while for now €730-750/mt is not officially announced," a market insider told SteelOrbis.
"I guess until the announcement of new quotas, the prices will be stable," another source said.
