The situation hasn't changed significantly in the EU HRC market in the past week. Sources keep talking about an objective imbalance between supply and demand, mainly due to good order books, reduced domestic production, and the lack of competitive import offers. HRC transaction prices are still at €480-490/mt in the Italian market, while prices have increased slightly in northern Europe, from €490-500/mt to €490-510/mt, all ex-works.
As reported previously, ArcelorMittal has increased its long-term contract prices to €550/mt ex-works in northern Europe, which could help local producers increase their spot prices further in the coming period. Most European producers are now offering their first-quarter rolling material. Currently, their offer prices can reach the €530/mt level in northern Europe and the €510/mt level in the Italian market, both ex-works.
Reduced supply and also reduced stocks at the distribution level are supporting prices currently, although several sources have been expressing doubts about the sustainability of end-user demand, especially in the automotive industry, also because new Covid-19 lockdown measures around Europe are expected to have an impact on local consumption levels.
Meanwhile, import offers remained limited due to the EU safeguard measures and the ongoing investigation on ex-Turkey HRC. HRC import offers are in the range of €460-480/mt CFR Italy for February shipments, according to sources.
