There is some confusion in the local Italian hot rolled coil (HRC) market at the moment surrounding pricing. Before ArcelorMittal's announcement of a €30/mt increase in its flat steel prices in Europe, HRC base prices in Italy were mostly at €450-460/mt ex-works. According to market sources, even though ArcelorMittal is asking for higher prices, i.e., close to €500/mt ($560/mt), no transactions have been recorded at the new levels yet, and the major market player prefers not to accept orders. At the same time, no other producers have taken a clear stance on prices. Lead times are generally short, while stocks are high compared to demand, and buyers are purchasing only what they need. For this reason, most service centers are skeptical about the chances of the price increase being absorbed, though the increase may help stabilize prices. In the meantime, HRC prices in northern Europe are still mostly at around €475/mt ex-works ($532/mt), i.e., unchanged compared to one week ago.
€1 = $1.12