Although sentiments have been rather positive in the EU hot rolled coil (HRC) market, most European producers have maintained their offers for January-February deliveries mainly unchanged, while the tradable level has indicated only a slight upward correction by €5/mt over the past week. At the same time, most overseas suppliers have maintained their HRC offers high for European buyers as well and some have decided to go higher, supported by the global uptrend.
More specifically, HRC offers prices in the EU for January-February deliveries have been voiced at €650-680/mt ex-works, the same as last week, with the Italian mills still offering at a minimum of €650-660/mt ex-works, while the tradable level has settled at €630-640/mt ex-works, up by €5/mt on the higher end of the range week on week. However, according to sources, several producers are reported to be targeting further hikes to around €680/mt ex-works for the next round of sales.
Meanwhile, in northern Europe, domestic HRC prices have been heard at €680/mt ex-works from mills, the same as last week, while the workable levels have settled at €650-660/mt ex-works in a few deals reported in Germany, against €645-660/mt ex-works last week.
“Trade has been limited this week as nobody wants to risk buying big volumes now. But more restocking is definitely expected in mid-December for February deliveries,” a local trader told SteelOrbis.
In the meantime, import HRC prices have continued to rise in Europe, reaching €620-650/mt CFR, depending on the origin, up by €5/mt week on week. Most offers for ex-Asia HRC in Italy have been estimated at €620-630/mt CFR, with offers for ex-Indonesia, Japan and India at around €630/mt CFR. Meanwhile, suppliers from Japan have been offered at €650/mt CFR Spain, up by €10/mt week on week.
Furthermore, according to sources, Egyptian HRC suppliers were offering at €650/mt CFR Mediterranean coast but have stopped offering by the middle of this week, emphasizing closed order books for February shipment. Meanwhile, following numerous deals for ex-Turkey HRC at €630-640/mt CFR including duty last week, this week new ex-Turkey HRC offers have been voiced at around $710/mt CFR, or €650/mt CFR including duty.
