Although many European mills have started to reopen after summer maintenance closures, trade activity has remained muted in the region. At the same time, this week most European mills have decided to increase their prices for HRC following the increase by ArcelorMittal announced last Friday, August 26. Despite this, buyers are being extremely cautious, according to sources, as they fear end-users may not be able to bear high prices in the long term. As for the import segment, more offers have been heard in the southern European market this week, with some indicating even slight increases, though trading activities have been very quiet.
Workable prices were evaluated at €700-800/mt ex-works last week, while this week they are mostly at €760-820/mt ex-works across Europe. More specifically, achievable prices are currently at €760-780/mt ex-works in Italy, up by €40-60/mt week on week, though most mills are targeting €800/mt ex-works. In northern Europe, the archievable price range is at €780-820/mt ex-works, up by €70/mt on average week on week.
According to market sources, Italian customers have also received an offer for ex-Serbia HRC at €780/mt delivered, though no deals have been heard so far.
Last week, as SteelOrbis reported, ArcelorMittal increased its HRC prices by €50/mt to €800/mt ex-works for October shipment. As a result, this move caused more European mills to follow suit and increase their HRC prices by around €100/mt. “ThyssenKrupp, US Steel Kosice and SSAB have all increased prices by €100/mt for October shipment. As for Italian producer Arvedi, it is not offering so far, but there are rumors that they will reopen at €800/mt,” a market insider told SteelOrbis.
Meanwhile, import trade activity in southern Europe remained quiet over the past week. However, more suppliers have come with new offers to the market. Import HRC offers have been reported at €680-710/mt CFR, compared to €670-690/mt CFR last week. More specifically, ex-Japan offers were reported earlier this week at €670/mt CFR Italy, while by the end of the week market insiders have started to report higher ex-Japan offers at €680-700/mt CFR Italy. Meanwhile, other Asian suppliers, like those from Taiwan, South Korean and Vietnam have announced new offers for Spanish customers at €710/mt CFR. Furthermore, offers from Turkey have been reported at €695/mt CFR Spain, including duty, this week.
