HRC prices have increased in the past week in the European HRC market on the back of the latest price offer increases by domestic producers both in northern Europe and in Italy. According to sources, flat steel producers are firm in their offers amid an improvement seen in demand after the easing of lockdown restrictions and due to the lack of competitive import offers, especially in the light of the recent EU safeguard amendments and the ongoing antidumping investigation on Turkish HRC.
Moreover, European producers are aiming to regain some profitability after witnessing a gradual reduction of their margins since early March.
Transaction prices have increased by €10/mt on average in Italy in the past week to €380-390/mt ex-works. Meanwhile, they have reached €390-410/mt ex-works in northern Europe, compared to the €385-405/mt levels recorded last week. Once again, sources expressed their doubts about the sustainability of the uptrend, as they underlined that the automotive sector, an important consuming industry, is still in the middle of a crisis. Moreover, the holiday period is approaching in Europe, which should cause the market to be quieter until September. However, transaction prices may indicate further slight increases in the coming weeks as local producers are aiming at a maximum level of €440/mt ex-works in northern Europe and at €400-420/mt in southern Europe.
As for the import market, according to sources, India has withdrawn its HRC offers to Europe as exporters fear they have exhausted their third-quarter quota following their previous sales. At the same time, other sources may offer material for shipment in September. As reported previously, ex-Turkey offers are under pressure - official Turkish levels are at around $440/mt FOB, while only some EU customers have expressed potential interest in buying small volumes at $400-410/mt FOB (around €370-380/mt CFR).