Hot rolled coil prices in EU increase further

Tuesday, 17 November 2020 14:38:17 (GMT+3)   |   Brescia
       

Hot rolled coil (HRC) prices have increased further in the EU market due to limited supply, good order books and, consequently, long lead times, and also due to a lack of competitive import offers. Transaction prices have reached €490-510/mt in the Italian market, up €5/mt on average compared to last week, while they have increased by €10/mt in northern Europe, to €520-530/mt, both ex-works. In both cases, mills are offering at higher levels, respectively at €510-520/mt and €540-550/mt ex-works. Lead times have increased further, especially in northern Europe, where some mills are now offering material for shipment in April.

According to market sources, domestic prices are likely to increase further in the coming weeks due to good demand and a lack of material in the spot market. As reported previously, the plants that were restarted in September are not operating at their normal capacity utilization rates yet. Meanwhile, the so-called "soft lockdowns" around Europe are not having a direct and strong impact on the steel industry, although some sources warn that their effect on end-user demand has yet to be seen.

As for the import market, although some European buyers, specifically from Italy, bought some HRC lots from Turkey in past weeks, the recent confirmation that ex-Turkey HRC is now subject to registration will probably discourage buyers from ordering such material. Moreover, 90 percent of the current EU quota for Turkish HRC - which totals 345,615 mt and ends on December  31 this year - has already been used up.


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