This week, trade activity in the EU hot rolled coil (HRC) market has remained slow given the sluggish demand from end-users in the region ahead of the summer break, while most importers have been waiting for more clarity on import duty risks and are refraining from new purchases. At the same time, the range of domestic offer prices has remained mainly unchanged, though talk about ArcelorMittal and other big EU mills intending to increase their HRC prices for October delivery has been circulating in the market.
Specifically, offers from mills have remained unchanged at €630-650/mt ex-works, with the lower end of the range corresponding to prices from Italian mills at €630-640/mt ex-works, while the higher end corresponds to offers at €640-650/mt ex-works in the north. “There are rumours of ArcelorMittal intending to increase its prices, but most buyers believe there will be little business booked between now and the end of August due to the holiday season and the lousy market,” a market insider told SteelOrbis.
Meanwhile, import HRC trade has been limited this week mainly amid uncertainty over the safeguard quota issue. According to sources, most buyers need to custom-clear only some part of HRC, while the rest of the volumes should remain at ports to avoid paying duties. Offers for ex-Asia HRC have been estimated at €590-605/mt CFR, mainly the same as last week, “but the duty risk is deterring buyers for now”. Offers from Indonesia have been heard at €600/mt CFR, directly from the mill, while a deal for around 5,000-10,000 mt has been reported at €635/mt CFR, through a trader. “Ex-Indonesia HRC is currently offered by Krakatau Steel, while Dexin Steel, which has recently started commercial production of HRC, has not been offering so far, but is negotiating with big EU buyers for technical and commercial agreements,” a market sources said, adding, “Probably Dexin will officially start to offer in late July-early August.”
Besides, offers for ex-Turkey HRC have been estimated at €610/mt CFR, excluding duty, which translates to around €630-640/mt CFR, duty paid, the same as last week.
