Hot rolled coil (HRC) prices have risen further in the EU domestic market in the past week, on the heels of new offers from ArcelorMittal and other mills. As reported previously, European mills have been increasing their offers in the past week on the back of higher production costs and increased import offers.
Workable prices are now at €940-970/mt in northern Europe and at €830-860/mt in the Italian market, both ex-works and up €30/mt and €20/mt respectively compared to January 28. Italian mills in particular are determined to regain the €900/mt price level in the coming period, one source told SteelOrbis.
According to sources, demand has not improved significantly in the past few months, while production has been cut due to high costs. Demand from the automotive sector in particular is likely to remain limited in the coming period due to the persisting shortage of semiconductors and also due to subdued consumer confidence.
As mentioned, however, EU mills are benefitting from some higher import offers which have surfaced recently, especially after the European Commission decided not to impose provisional antidumping duties on imports of HDG and other corrosion-resistant flat products from Russia and Turkey. While most HRC import offers were at €770-780/mt CFR Italy two weeks ago, they have now reached €800-840/mt CFR Italy, with the higher end of the range represented by ex-India offers for late March shipments.