HRC prices have kept increasing in the European market in the past week, due to limited supply and volatile raw material, energy and logistics costs amid the lack of supplies from Ukraine and Russia. Despite this, buyers are being increasingly cautious, according to sources, as they fear end-users may not be able to bear record-high prices in the long term.
Workable prices were evaluated at €1,300-1,400/mt ex-works last week, while this week they are mostly at €1,350-1,400/mt across Europe, "and even slightly higher in northern Europe," as one source underlined.
Last week, as SteelOrbis reported, ArcelorMittal increased its HRC prices by €100/mt across Europe to €1,400/mt ex-works, but sources believe this offer may not be valid for too long, as other producers have started offering their material at up to €1,500/mt. Mills in general are still offering very limited volumes to the spot market.
In this context, HRC import prices have been increasing as well, with European buyers purchasing mainly from Asia. Ex-India offers were reported earlier this week at $1,300/mt CFR Europe (€1,185/mt CFR), while today Indian producers have updated them to $1,375/mt CFR Antwerp (€1,254/mt CFR). "Indian levels are the lowest, but they are also at risk of exceeding the quota," a source said. HRC from Japan and South Korea have been offered respectively at €1,200/mt and €1,250/mt CFR Spain. Ex-Indonesia and ex-Vietnam offers have been reported at €1,250/mt and €1,275/mt CFR Europe, respectively. Offers from Thailand and India have been reported at €1,170/mt and €1,230/mt CFR, respectively, while Egyptian HRC prices are at €1,270/mt CFR. Meanwhile, Turkey's HRC offers are higher than the average, being at €1,410-1,450/mt CFR Spain, duty paid. Finally, offers coming from China to Europe are at $1,040-1,050/mt CFR and above, although buyers are not interested in Chinese material, which is subject to AD and CVD duties.