Hot rolled coil (HRC) prices have continued to increase in the European market, after ArcelorMittal announced prices of €480/mt and €500/mt for Italy and northern Europe respectively early this week. Compared to January 13, transaction prices have increased by €10/mt in the Italian market, to €440/mt ex-works. However, according to market sources, Italian steelmakers Arvedi and Marcegaglia have raised their offers to €460-465/mt ex-works this week. Meanwhile, HRC prices have increased by €5/mt on average in northern Europe, reaching €445/mt ex-works. Lead times have extended into April across Europe. Local HRC prices have been supported by high import offers, firm iron ore prices and decent restocking activities, especially in northern Europe, while consumption in the downstream markets is described as "normal". Market sources believe that the latest price increases by European producers will be absorbed in the coming weeks.