Transaction prices have indicated a further slight increase in the EU market in the past week, although they have trended sideways in the Italian market due to the approach of the traditional summer holiday period. HRC prices are now at around €410-415/mt levels in northern Europe, up €5/mt, while they have remained at €390-400/mt in Italy, both ex-works. Local producers are still offering material at a higher level, i.e., at €440-450/mt in northern Europe and at up to €420/mt in Italy, but these prices are not workable yet.
As reported previously, sources expect local prices could inch up further in September after the end of the summer holiday period, as buyers will need to restock. Also, local prices in Europe will be supported by the lack of import offers - due to stricter EU safeguard measures, ongoing investigations against Turkish HRC and longer lead times compared to domestic offers.
The recovery of the automotive sector remains a wildcard for most customers as, although consumption has been slowly increasing in past weeks, it seems that it will not return to pre-Covid levels before the end of this year. HRC prices are expected to remain stable throughout August.