Transaction prices of hot rolled coils (HRC) have remained stable in the EU in the past week, i.e., in a range between €1,120/mt and €1,210/mt ex-works. Achievable prices mainly amount to €1,150-1,210/mt in northern Europe and to €1,120-1,160/mt in the Italian market. Supply continues to be tight, although demand has weakened recently among service centers and distributors due to sufficient stocks, high prices and credit problems. On the other hand, local mills are in no hurry to reduce prices as they continue to enjoy excellent order books. Their offers are mainly for deliveries in November-December this year. As previously reported by SteelOrbis, last week leading producer ArcelorMittal raised its HRC prices by €30/mt to €1,200/mt ex-works.
In the meantime, the interest of European buyers in import offers has increased as they appear to be sufficiently competitive currently. According to sources, an Indian steelmaker has offered HRC at €920/mt CFR Italy for August shipment, while ex-Turkey offers stand at around €1,020/mt CFR, antidumping duty included. In addition, offers of around €1,035/mt CFR were received from Japan. The European Commission has recently formalized the extension of the safeguard measures until June 30, 2024, and so it is expected that European importers will be more active in purchases in the coming period. However, it will be necessary to wait a few days to understand to what extent the third quarter quotas have already been used up.