Hot rolled coil (HRC) prices have increased further in the EU domestic market due to short supply. While transaction prices were at €740-770/mt on March 5, by the end of last week they had reached €770-800/mt, all ex-works. They have not risen further this week, according to sources. However, buyers are still struggling to get the volumes they need and lead times are very long, with several northern European mills close to being sold out for the third quarter. In Italy, last week the Council of State ruled that the hot area of the former Ilva plant in Taranto, run by ArcelorMittal Italia, can continue producing at least until mid-May. The company had been ordered by the Regional Administrative Court (TAR) of Lecce to halt activities by mid-April in order to prevent emissions from the plant, but had appealed against this ruling. However, Ilva's production remains below 50 percent of its capacity, SteelOrbis has learned. "The supply situation is not going to improve anytime soon," one source said, pointing out that several plants will undergo planned maintenance in the coming period, while production will be traditionally lower during the summer months.
Meanwhile, import offers remain generally unaffordable due to the EU safeguard measures, antidumping duties, and the price increases by foreign suppliers. According to sources, ex-Turkey offers have reached $900/mt FOB, while recently ex-India material has been sold at $875-880/mt CFR southern Europe. Previously, an Indian supplier sold around 10,000 mt of HRC to Italy at $865/mt CFR, with shipment in June. Egyptian suppliers are said to be sold out for May shipments, while their latest offers were around $850/mt FOB. Finally, Russian producer Severstal has sold 10,000 mt of HRC to northern Europe at $875-880/mt FOB Baltic Sea.