As SteelOrbis previously reported, European producers are offering hot rolled coil to the market at €430-450/mt ex-works, although virtually no one is paying such levels, neither in Italy nor in northern Europe. However, spot prices in the Italian market have indicated further slight increases in the past few days, going from €415-420/mt to the average level of €420-430/mt ex-works. Europe's largest steel processor Marcegaglia, according to market sources, is now offering HRC at €450/mt ex-works for shipment in the first quarter of 2020, and other mills are insisting on firm offers citing production cuts and high import offers.
However, activity has decreased significantly recently in the European market as many buyers are well stocked and also because they are uncertain about the sustainability of the current uptrend in the medium term, and furthermore considering the lack of clarity regarding the Ilva crisis. At the same time, other sources believe that prices may continue to increase in January after the Christmas holidays due to the recent decrease in import competition. As reported previously, Turkish offers reached €450/mt CFR Italy for February shipments, but no sales were recorded at this price and importers maintained a wait-and-see stance. In northern Europe, HRC transaction prices are still at €425-430/mt ex-works, unchanged compared to a couple of days ago.