HRC shortage in EU keeps pushing up prices

Hot rolled coil (HRC) prices have increased further in the EU market in the past week, from €870-900/mt ex-works to €890-910/mt ex-works on average, due to good demand and the persisting shortage of material. Domestic transaction prices are expected to reach the latest target of €920/mt set by ArcelorMittal very soon. Lead times have remained very long, with local steelmakers offering their late third quarter production and beyond. Lots of mills are also holding back from offering their material due to a lack of supply and because they can take their time while they expect prices to increase further. Meanwhile, buyers in general have low stocks. This situation, as reported previously, is not expected to change in the short term. The uncertainties around Liberty Steel and ArcelorMittal Italia are also contributing to fears of further supply shortages across Europe. The lack of supply in the EU market has spurred some import activities recently, although import offers are in line with domestic prices and some sources, notably India, have exhausted their quarterly quota as it became available. According to sources, import HRC offers are mostly ranging from €880/mt to €910/mt CFR southern EU. As reported previously, the European Commission has decided to terminate its anti-subsidy investigation on HRC originating in Turkey. Several sources believe the Commission will also decide to end its safeguard measures when they expires at the end of June this year.