Hot rolled coil (HRC) prices have jumped up further in the EU market in the past week, due to the ongoing shortage of material and good demand, both apparent and from end-users.
According to sources, transaction prices for hot rolled coil (HRC) have reached €600/mt ex-works on average in northern Europe and €580-590/mt ex-works in the Italian market, both up €25/mt on average compared to December 9.
As reported previously, in the week ended December 6 steel giant ArcelorMittal pushed up its offers to €650/mt ex-works for all Europe.
All European mills are now sold out for first quarter shipments. In particular, mills are offering April-May production in northern Europe, and March-April production in Italy. Distributors have been saying that their main concern is not prices but not being able to get the material they need. In this context, imports have remained subdued due to EU safeguard quotas, high prices and long lead times. The reference for HRC import prices in Italy is currently €580-600/mt CFR, against last week's €560-580/mt CFR levels.
The current situation is "poised to last very long, not just until early next year," one trader commented.