Despite the significant rise in HRC offers for European customers announced by ArcelorMittal last week, this week the range of domestic coil offers prices from other mills has remained mostly unchanged for November delivery, given the lack of demand in the region. However, market insiders have been actively discussing a possible increase in prices by at least €20/mt for deliveries in December and later, though the sustainability of significant upward price movements is still doubtful as real demand has remained slow.
More specifically, offers from mills have remained relatively unchanged at €560-570/mt ex-works northern Europe for November and December deliveries, while offers in Italy have been at €540-550/mt ex-works for delivery in November. At the same time, tradable prices have been voiced at €550/mt ex-works in the north, but, according to sources, mills are aiming at €560/mt ex-works and higher for first quarter orders. Furthermore, workable prices in Italy have been heard at €530-550/mt ex-works, against €540/mt ex-works last week.
“Even though mills will push for higher prices, real demand will remain a huge problem. There is talk about some production stoppages which can actually help producers to raise prices. ThyssenKrupp is considering stopping its plan for the DRI hydrogen plant to produce green steel,” a market insider told SteelOrbis.
In the import segment, trade has remained extremely slow as buyers have been refraining from new purchases due to risks related to safeguard quotas and antidumping duties. At the same time, most import offers have increased over the past week, reaching €565-575/mt CFR for ex-Asia HRC, Vietnam, Taiwan and Japan in particular, up by €5-10/mt week on week. Besides, according to sources, following a deal for ex-India HRC signed at $605-610/mt CFR last week, or around €553-557/mt CFR, new offers for ex-India HRC have been estimated at €580/mt CFR through traders, though such a level is considered to be unworkable.
Offers for ex-Turkey HRC have been voiced at €580-590/mt CFR, including duty, up by €5-10/mt over the past week.