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.