Hot rolled coil (HRC) prices have increased further in the EU market compared to last Thursday, on the back of a shortage of material and a lack of import offers. As reported previously, last week global steel producer ArcelorMittal increased its price offers to €600/mt in northern Europe and to €580/mt in southern Europe, both ex-works. Other European steelmakers have increased their prices in the past few days, and, although transaction prices have not reached these levels yet in the spot market, they have risen further. According to sources, transaction prices have reached €540-550/mt ex-works in northern Europe and €520-540/mt ex-works in the Italian market, with the lower ends of these ranges quickly becoming less and less available. Many suppliers have closed their sales for the first quarter next year and are offering material for April shipment.
According to sources, at least one Italian steelmaker is offering HRC at €550/mt ex-works, while other local suppliers have halted their sales. Domestic demand is good, while supply is very limited. "There is no material, which clashes with EUROFER's story that we would risk being overwhelmed by import flows. Actually, the risk is that we will remain without material. I fear the price will be of secondary importance in the coming period, as the first thing that buyers will ask their suppliers will be whether they have volumes to sell or not," commented Tommaso Sandrini, president of Assofermet Acciai.
As mentioned, import activities are almost non-existent as even foreign suppliers have a problem with shortage of material. Also, in the case of ex-Turkey HRC, market players are waiting for the result of the ongoing EU antidumping investigation. Meanwhile, an Italian steel processor is rumored to have bought HRC from Egypt at €540-550/mt CFR recently. At the same time, an Indian mill has offered HRC to Europe at a price slightly above €520/mt CFR.