Domestic producers are still insisting on higher prices in the EU hot rolled coil (HRC) market, although the uptrend of local transaction prices has slowed down in the past week as buyers have reduced their purchasing activities.
In the Italian domestic market, HRC base prices have trended sideways at €470-480/mt ex-works. At the same time, prices have increased from €480-495/mt to €485-500/mt in northern Europe, ex-works. However, local producers are seeking price levels of €490-500/mt in the Italian market and levels of €520-530/mt in northern Europe. Moreover, sources have told SteelOrbis that it is rumored that an Italian producer will start asking for a further €20/mt increase from Monday next week.
HRC prices are still firm in the EU market on the back of low supply both from the local market and from imports. However, trading activities have slowed down recently as most buyers bought what they needed in past weeks and are now reluctant to accept higher price levels. Moreover, they may start asking for price reductions if lead times are shortened as a result of blast furnaces being reactivated around Europe. Some sources have commented that European steelmakers need also to be careful not to increase their prices too much, otherwise import offers may become attractive again. At the moment, though, import activities for ex-Turkey HRC are muted due to the ongoing EU antidumping investigation, which could lead to retroactive duties from mid-October onwards.