HRC prices in Europe have kept increasing this week despite minor fluctuations. The main factor behind this upward trend has been buyers’ preference for domestic supplies over imports, as they have sought to avoid trade risks linked to the European Commission’s latest steel safeguard review. Additionally, market insiders expect more clarity on the new safeguard measures by the end of the week. This has fueled local buyers’ expectations that domestic HRC prices would continue to rise in the short term, encouraging them to replenish their stocks.
More specifically, this week HRC mills in northern Europe have been offering June delivery materials at around €640-650/mt ex-works, up by €10-20/mt week on week. However, most buyers’ estimations for the workable prices have been heard at €600-630/mt ex-works, against €600-620/mt ex-works last week, with several transactions reported to have been signed at €630/mt ex-works, according to sources.
In the meantime, offers from Italian producers have been voiced at around €610-630/mt ex-works, mainly the same as last week. However, workable prices have been reported at €600-615/mt ex-works, up by €10-15/mt since last week.
“We expect ArcelorMittal to announce another €20/mt hike for HRC in the next few days. Besides, everyone is holding their breath pending the rumored EU safeguard review announcement tomorrow,” a European trader told SteelOrbis.
In the import segment, trade activity has remained in a lull, with most offers for ex-Asia, for ex-Malaysia and ex-Indonesia in particular, have been voiced at around $585/mt CFR, which translates to around €560/mt CFR, but, according to sources, “no one wish to take any risk now”. Offers from South Korea have been heard at €580/mt CFR Spain, while suppliers from Egypt and Taiwan have been silent this week.
Furthermore, following several bookings for ex-Turkey HRC done at €580-590/mt CFR last week, this week most ex-Turkey HRC offers have been estimated at €590-600/mt CFR, duty paid, while a number of traders in Spain have reported the same offers but without duty.
