As anticipated, the downward trend of hot rolled coil (HRC) prices in Europe has started to reverse this week, especially in Italy. Meanwhile, rebounds have continued to be seen in import HRC prices as well, providing additional support for the market mood. And although a significant price uptrend is doubtful so far given the still slow demand recovery, most European mills are optimistic for HRC prices for January-February deliveries.
Workable prices in the EU HRC market have settled at €610-650/mt ex-works, compared to €590-650/mt ex-works last week. In particular, this means for Italy its official offers for HRC from mills have settled at €610-650/mt ex-works, up by around €10-30/mt week on week, while the workable prices have increased by €20/mt to €610-620/mt ex-works over the past week. In northern Europe, prices averaged at around €630/mt ex-works, the same as last week, though the transaction prices have remained at €600-620/mt ex-works.
Sources have underlined that European steelmakers both in southern and northern regions are aiming to increase their offers for January and February deliveries HRC up to €650-660/mt ex-works and some to even €680/mt ex-works.
Meanwhile, import HRC offers in southern Europe, which have started to rebound since last week, have settled at €610-640/mt CFR, depending on the supplier, up by €10/mt week on week. In particular, most Asian suppliers, like those from Japan, South Korea, Vietnam and Taiwan have been refraining from new offers, with the indicative price level estimated by European buyers at €610-615/mt CFR, up by 10/mt over the past week. “This week it seems import prices have stabilized at €610/mt CFR, but orders were closed last week and now trade is on pause again,” an Italian trader told SteelOrbis. At the same time, market insiders have reported that Indian suppliers have been the most active this week. In particular, after a deal for ex-India HRC was reported at €590/mt CFR Italy at the beginning of this week, new offers have been voiced at €610/mt CFR Italy, while customers from Spain have reported offers for ex-India materials at as high as €630-640/mt CFR, compared to €600/mt CFR last week.
