After increasing by about €470/mt on average, hot rolled coil (HRC) prices in the EU domestic market have declined slightly in the first week of April. As reported previously, the market started to cool down a bit in late March, as distributors had sufficient stocks and were also less inclined to buy, both considering the record-high prices and the fact that their credit lines were full. The situation has not changed since. Moreover, local prices have started coming under some pressure from competitive import offers.
Workable prices in the EU HRC market are now at €1,320-1,400/mt ex-works according to sources, against the €1,380-1,430/mt levels reached last week. More specifically, a range of €1,320-1,350/mt is more common in the Italian market, while prices of €1,350-1,400/mt can be achieved in northern Europe, both ex-works. Distributors are mostly maintaining a wait-and-see approach and for the time being are in no hurry to restock, sources commented.
Meanwhile, import offers have been reported at levels between €1,150/mt and €1,300/mt CFR southern Europe. Offers from Taiwan, Japan, South Korea and Egypt are closer to the lower end of the range, while offers from Turkey are closer to the €1,300/mt level, duty paid.