Although sentiment has improved slightly in recent weeks in the EU hot rolled coil (HRC) market, the range of domestic offer prices has remained mainly unchanged, with only slight increases seen in occasional transactions. At the same time, foreign HRC suppliers have continued to test the market with slightly higher offers, though, according to sources, Indian sellers have been the most active.
Workable prices in the EU HRC market have remained at €610-650/mt ex-works, with official HRC offers from Italian mills standing at €610-650/mt ex-works, the same as last week, though the workable prices have increased by €10/mt to €620-630/mt ex-works over the past week. In northern Europe, prices have averaged at €630/mt ex-works, the same as last week, while transaction prices have remained at €600-620/mt ex-works. However, according to market insiders, most mills in the north are aiming their offers at not below €650/mt ex-works for February deliveries HRC.
Meanwhile, most foreign HRC suppliers have been trying to increase their offers for the European buyers this week. However, the deal prices have remained at last week’s levels. “We can confirm that traders and exporters are asking €10-20/mt higher for new HRC orders. But we are not sure that the market will accept it because on the other hand local producers are asking for nothing more,” an Italian trader told SteelOrbis. In particular, Asian HRC suppliers, like those from Japan, Taiwan, South Korea and Vietnam have increased their offers to €620-630/mt CFR southern Europe, versus €610/mt CFR last week. “Following a deal for ex-Taiwan HRC at €610/mt CFR Spain last week, new offers have settled at €620-630/mt CFR Spain this week,” a Spanish trader said. According to some sources from Italy, there are still lower offers at €600/mt CFR from South Korea, though this level is considered as more “occasional than real” by most European buyers.
At the same time, as SteelOrbis reported earlier, Indian HRC suppliers have been the most active in terms of offers and sales in southern Europe. “There are talks that one of the Indian mills sold around 100,000/mt of HRC over the past weeks to Italy at around $610/mt CFR,” an Italian trader told SteelOrbis. This week, however, offers for ex-India HRC have been voiced at €610-615/mt CFR, and some at €620/mt CFR.