Hot rolled coil (HRC) prices have indicated a further slight increase in the EU domestic market in the past week, particularly in Italy, thanks to improved demand, high production costs and higher import offers.
Sources told SteelOrbis that workable prices are now at about €850-860/mt ex-works in the Italian market, up €10/mt on average compared to last week. Meanwhile, local mills' offers have reached a maximum of €900/mt ex-works.
At the same time, transaction prices have remained stable in northern Europe, i.e., at €940-970/mt ex-works. Mills' offers have reached around €980/mt ex-works. EU mills in general are offering their second quarter output in the spot market.
As mentioned, demand has been better lately, although most sources continue to believe that demand from the automotive sector is likely to remain limited in the coming period due to the persisting global shortage of semiconductors and also due to subdued consumer confidence.
In the past few weeks, EU mills have continued to benefit from higher import offers. Last week, around 30,000 mt of HRC from India were sold at $925/mt CFR southern EU and ex-India offers have risen to $950/mt CFR from $900-915/mt CFR a week earlier. Meanwhile, ex-Japan offers have already reached the $1,000/mt CFR level for April shipments, from $945-950/mt CFR only a few days ago for March shipments. A deal from Japan to Italy was closed at $920/mt CFR, while a lot of 35,000 mt was sold by a Vietnam-based producer to Italy in early February, at an undisclosed price. Finally, Turkish producers are offering HRC to Europe at around €890-900/mt CFR, duty included. One week ago, import offers were generally at €800-840/mt CFR Italy.