Hot rolled coil (HRC) prices remained firm in the EU market, due to a combination of high costs, good end-user demand and high import offers. Some sources have also cited the Russian-Ukrainian conflict as a reason for possible further higher costs in the coming period, as well as reduced finished steel import volumes. However, as in the past several months, automotive demand in the European market has remained subdued owing to the shortage of semiconductors globally.
In northern Europe, transaction prices have increased by €20/mt on average in the past week, to €950-1.000/mt ex-works. Concurrently, workable prices in the Italian market have remained stable at €870-900/mt ex-works, after increasing by €30/mt in the previous week.
Meanwhile, import offers have remained slightly below the €900/mt CFR southern Europe level in most cases. In particular, this week HRC offers from Turkey have been reported at around €890-905/mt CFR Italy, while offers from South Korea are at €880-890/mt CFR Italy. Moreover, ex-Japan and ex-Taiwan offers are at €885/mt and €890/mt respectively, both CFR Spain. Ex-Russia offers have been higher, i.e., at €940/mt CFR southern Europe, but with duty included.