European hot rolled coil (HRC) prices have seen an upward push this week, led by ArcelorMittal, which raised its domestic offers across the EU by approximately €30/mt compared to last month. While other European mills have attempted to follow suit, most of their increases have been more modest, up by around €10/mt since last week. At the same time, European producers are increasingly counting on the anticipated impact of the Carbon Border Adjustment Mechanism (CBAM), along with the potential introduction of new trade measures to succeed the current safeguard system.
Specifically, in the local EU market, ArcelorMittal announced its new target for HRC at €590/mt delivered in the north and at €580/mt delivered in the south, mainly for September-October deliveries, up €30/mt from the previous official levels announced last month.
Meanwhile, most local HRC prices from mills in northern Europe, for September and October deliveries, have been estimated at €5600-580/mt ex-works, up by €10-20/mt week on week, while the tradable price level has settled at €540-550/mt ex-works levels, up by €10/mt week on week. “Mills are placing excessive reliance on protectionist measures, while real consumption levels do not support any price increases at this stage. But, whether higher offers will actually translate into deals remains uncertain,” a market insider told SteelOrbis.
“Most major suppliers have already closed their order books for September delivery, with some mills now attempting to introduce modest price increases for material scheduled for October delivery,” a representative of one mill said.
Meanwhile, in Italy, indicative offers from mills have settled at €540-550/mt ex-works, mainly for September delivery, up by €10/mt over the past week, while workable prices have settled at €525-530/mt ex-works, versus €510-525/mt ex-works last week.
In the meantime, most offers for import HRC in southern Europe have remained stable at €450-500/mt CFR, depending on the supplier. In particular, offers from Indonesia have been estimated at €450-460/mt CFR levels. Besides, offers for ex-India HRC have been voiced at $580-585/mt CFR, which translates to around €493-497/mt CFR.
Meanwhile, offers for ex-Turkey HRC have varied depending on the source, with most offers quoted at €480-500/mt CFR, duty included, the same as last week.
$1 = €0.85