HRC domestic prices in the EU have increased further in the past week, although the pace of the increase has been slightly lower than earlier in the month. Workable prices were at €1,350-1,400/mt ex-works last week, while this week they are mostly at €1,380-1,430/mt across Europe. More specifically, a range of €1,380-1,400/mt is valid in the Italian market, while €1,400-1,430/mt is more common in northern Europe, both ex-works. Prices have been trending up since late February, due to limited supply and volatile raw material, energy and logistics costs amid the lack of supplies from Ukraine and Russia.
According to market sources, the situation in the EU HRC market "has cooled down a bit recently, after four weeks of rapid price increases and purchases," as distributors now have sufficient stocks and are also less inclined at paying record-high prices. Consequently, trading activities have slowed down in the past week. Buyers are now "waiting to sell some material before restocking," one source commented, adding that, on the other hand, "mills may have realized they have increased their prices a bit too fast." The same source said that leading producer ArcelorMittal is almost sold out for June deliveries, while "they are reluctant to open third quarter sales."
Price increases in the EU domestic market may also come to an end due to lower import offers, some sources suggested. "Nowadays, offers from China, duty included, are €150-200/mt below domestic offers. I think this too is restraining purchasing activities in the local market," one distributor commented. "It's true we're talking about commodities, but the price is competitive and lead times are relatively short - shipping is in April and arrival is between May and mid-June." Despite this, sources said that no significant volumes have been bought in the import market either in the past week. While offers are all above the €1.200/mt CFR mark, with ex-Turkey offers even surpassing €1,400/mt CFR (duty paid), buyers in general are reluctant to pay prices above €1,200-1,250/mt CFR, sources underlined.