This week, in Europe the hot rolled coil (HRC) sector has shown signs of improved buying activity, particularly in the northern region, compared to the notably low levels observed throughout January. Meanwhile, although in Italy there has been no significant rebound in bookings or shipments compared to January figures, steel mills have been aiming for higher prices for April deliveries as well. In the import segment, business activity remains significantly affected by trade measures, though talk about deals for low-priced HRC has been circulating in the market this week.
More specifically, European mills in northern Europe have been offering HRC at €620-640/mt ex-works for deliveries in the second quarter, up by €10/mt on the higher end of the range week on week, while the tradable prices have been estimated at €600/mt ex-works, the same as last week. According to market insiders, while traded volumes have not been substantial, market activity has clearly been gaining momentum. However, uncertainty remains regarding new imports and potential steel safeguard measures set for April, leaving buyers reliant on European mills.
In Italy, HRC offers from mills have been voiced at around €600-620/mt ex-works, the same as last week, though, according to sources, some mills have been pushing their offers for April delivery at €630/mt ex-works. Meanwhile, the tradable prices have been assessed at €585-600/mt ex-works, against €580-600/mt ex-works last week.
As for imports, the price range has been widening this week, reaching €530-590/mt CFR, against €560-590/mt CFR last week, given rumors about new deals for ex-Indonesia and ex-Malaysia HRC signed at $550/mt CFR southern Europe, which translates to around €530/mt CFR. “These is no official confirmation. Our guess traders are fishing. Besides, we think they don´t have EU certificates to target all customers, which puts their materials at a disadvantage compared to other offers,” a European trader told SteelOrbis.
Offers from other Asian suppliers have been rare with indicative prices from Taiwan heard at €565/mt CFR, while offers from Japan and South Korea have been estimated at €580/mt CFR level, mainly the same as last week.
At the same time, while most offers for ex-Turkey HRC are still estimated at €590/mt CFR, including duty, the same as last week, talk about a deal for ex-Turkey HRC signed at €575/mt CFR, duty paid, has been circulating in the market this week.
Besides, offers for ex-Egypt HRC have been reported at $590/mt CFR, which translates to around €566/mt CFR.