The domestic offer prices for hot rolled coils (HRC) in Europe have remained mainly unchanged this week, though EU mills have still been aiming to increase their offers for June delivery coils. At the same time, even though import trade is still challenging due to numerous restrictions in the region, some revival in business activity has been seen following new deals for ex-India HRC.
Specifically, offers from mills have remained unchanged at €640-660/mt ex-works for May-June delivery in northern Europe and at €620-650/mt ex-works for delivery in May in Italy. At the same time, according to sources, most mills, especially those in the north, have still been aiming to increase their offers to €670-680/mt ex-works for June deliveries. However, the current tradable price level has been estimated at €630-650/mt ex-works, the same as last week. Besides, workable prices in Italy have been reported at €610-620/mt ex-works, moving sideways week on week.
According to sources, steel production in Europe remains at relatively low levels amid ongoing operational challenges at domestic mills. Market participants frequently cite delays in deliveries, while producers maintain a firm stance on pricing. In several cases, mills have advised buyers to seek alternative suppliers if prices are not acceptable. However, given the limited availability of competitive options, customers often find themselves with few viable alternatives.
In the meantime, as SteelOrbis reported earlier, European HRC buyers have been more active in buying ex-India HRC again lately with at least three deals for around 30,000 mt in total disclosed this week. In particular, several deals for ex-India HRC have been signed with European buyers at $625-630/mt CFR Italy and Antwerp for shipments at the end of April and in May, which translates to around €580-584/mt CFR. Besides, another Indian mill has signed another deal with an Italian buyer at $615/mt CFR, which translates to around €570/mt CFR.
Furthermore, talk about an ex-Turkey HRC deal signed at $635/mt CFR, or around €588/mt CFR including duty, has also been circulating in the market, though this information has not been confirmed by the time of publication.
Other foreign suppliers have been less active in the EU this week, with indicative offers for ex-Asia HRC estimated at €560-570/mt CFR, though no deals have been confirmed at the abovementioned level.
$1 = €0.93
