While most European flat steel producers have been holding back from giving offers in the past few weeks, Italian steelmaker Arvedi has come out with offers this week at €1,320/mt for HRC, at €1,420/mt for CRC, and at €1,470/nt for HDG, all delivered northern Italy, according to SteelOrbis sources. These are for limited volumes and for June deliveries. In the second week of March, the mill offered HRC at about €1,100/mt delivered, but prices kept increasing on the back of the lack of supplies of raw materials, semis and finished steels from the CIS region after Russia's invasion of Ukraine, as well as due to surging energy prices and input costs.
Last week, ArcelorMittal increased its coil offers by €150/mt across Europe, to €1,300/mt for HRC, €1,400/mt for CRC, and €1,450/mt for HDG, all ex-works. The lack of materials, especially coking coal and slabs, from Russia and Ukraine, has been putting production activities in the EU at risk recently. These activities have been experiencing hiccups recently, with many plants being temporarily halted and restarted more than once.
Currently, achievable price levels for HRC are reportedly around €1,250-1,320/mt both in northern Europe and in the Italian market, up more than 40 percent month on month, and up almost 30 percent compared to one week ago. The uptrend, which sources label as “entirely supply-driven”, is expected to continue in the short term.