The upward trend of hot rolled coil (HRC) prices has continued in the Italian market and in northern Europe. In Italy, transaction prices have exceeded €440/mt ex-works and are now close to €450/mt ex-works, but could increase further in the coming days. Meanwhile, in northern European countries, prices are at €455-460/mt ex-works on average, up €10/mt compared to January 17. Delivery times extend until March and April.
"The upward trend is supported primarily by the lack of import offers," commented Tommaso Sandrini, president of Assofermet Acciai which represents Italian steel distributors, who explained to SteelOrbis that, after an initial period of skepticism, service centers have started accepting producers' price increases in the Italian market in the past few weeks. However, "there are no big differences in the level of real consumption," he added. He went on to say that, in addition to the high offers from third countries, the news reports of the idling of some plants around Europe is also contributing to supporting the upward trend. Among the most recent of such developments are those relating to ArcelorMittal’s declaration of force majeure in France and ArcelorMittal Gent's furnace B.
According to market sources, the difference between HRC prices in the Italian market and offers from Turkey is around €30-35/mt these days and buyers’ bids for imported products are low. However, sources warn that mills from Turkey, which are currently offering at €475-485/mt CFR, may provide sizeable discounts soon as import scrap prices in Turkey have dropped sharply.