As expected, European producers have continued to raise HRC offers following the €40/mt increase by the leading regional producer ArcelorMittal last week. Besides, tradable price levels have also increased in new deals across the region, though business activity has been less active than last week, with most deals reported for relatively small volumes. Meanwhile, although most import HRC prices, for ex-Asia material especially, have remained unchanged, most suppliers are targeting further increases in the next round of sales.
Workable prices in the EU HRC market have increased to €660-680/mt ex-works, up by €10/mt week on week. More specifically, the tradable level has been estimated in Italy at around €660-665/mt ex-works for January delivery and at €670/mt ex-works for delivery in February, though official offers from Italian mills have been voiced at €700/mt ex-works for February delivery, versus €660-670/mt ex-works last week.
Meanwhile, in northern Europe, although several deals have been reported at €670-680/mt ex-works, mainly the same as last week, most mills have increased their prices to €720/mt ex-works, as had been expected last week. “We all anticipated the €720/mt level, but it is still doubtful anyone will accept €700/mt ex-works or higher,” a local trader told SteelOrbis, adding, “All depends on mill production discipline in Europe.”
As for imports, most offers have remained at €630-660/mt CFR, the same as last week, with most ex-Asia HRC offers, including those from Japan, Vietnam, South Korea and Taiwan at €630-650/mt CFR. Meanwhile, a deal for around 5,000 mt of ex-Turkey HRC has been reported this week at around €660/mt CFR, including duty, though, according to sources, the new price ideas of Turkish suppliers have risen by around $50/mt coming towards the end of this week.
“Asian sellers are looking for another $50-70/mt hike this month. Last month’s [November] Asian bookings all sold out, so we can see a $30-50/mt increase comfortably,” an international trader told SteelOrbis.
