HRC market in EU remains bullish due to tight supply

Wednesday, 28 April 2021 15:03:26 (GMT+3)   |   Brescia
       

HRC prices have remained strong in the EU market in the past week due to the persisting shortage of products both locally and in the import market. Late last week, ArcelorMittal raised its HRC offers to €1,000/mt ex-works, and other producers followed suit. Transaction prices have reached €950-980/mt ex-works, compared to the €910-950/mt ex-works levels recorded seven days ago. More specifically, €950-970/mt is the range of prices achievable in the Italian market, while the upper end of the range has been recorded in northern Europe. Most of the increase happened last week, while the upward trend seems to have slowed down a little in the past few days, as most domestic mills have very limited volumes, in some cases also due to technical problems, or else they are waiting for prices to increase further before again offering their material. "In Italy, offers at €1,000/mt are virtual so far. The mills are not offering," one source told SteelOrbis. At the same time, buyers are having a hard time opening credit lines amid high prices and very long lead times, some sources explained. Shipments are for the late third quarter and beyond. At least one mill has been offering HRC for November or even December delivery, one trader told SteelOrbis. Meanwhile, market sources have reported that Liberty Liège-Dudelange, with a total annual capacity of 1.6 million mt of galvanized/coated steel has cancelled contracts that were closed last year, as it has not been receiving feedstock, i.e., HRC. As reported in March, ArcelorMittal stopped supplying HRC to UK-based Liberty Steel's galvanizing lines in Belgium and Luxembourg after the news of financial problems at Liberty Steel following the collapse of its biggest financial backer, Greensill Capital. More recently, ArcelorMittal had been supplying such lines, but only with upfront cash payment.

As for the import market, offers have been ranging mostly from €930/mt to €950/mt CFR, which is close to domestic offers. Accordingly, import activities are reported to be slack, also because offers are limited due to the EU safeguard measures. As reported previously, the export quota for Indian HRC was exhausted in early April. Meanwhile, this week the European Commission has announced the definitive antidumping duty on ex-Turkey HRC, with rates that are slightly lower compared to the earlier-announced provisional rates. Market sources believe Turkey will remain a major import source for the EU in terms of HRC supply. Lastly, the market is still awaiting the EU decision on safeguard measures, which are due to expire at the end of June this year.


Similar articles

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News

Local HRC prices sink further in Turkey

26 Mar | Flats and Slab

Import HRC prices to Pakistan decline in new ex-China offers, other suppliers avoid discounts

26 Mar | Flats and Slab

Ex-India HRC prices soften slightly amid slow demand globally

26 Mar | Flats and Slab

Mood among Chinese HRC exporters worsens again after slight rise last week

26 Mar | Flats and Slab

Some EU flat steel import quotas about to be exhausted near end of period

26 Mar | Steel News