The European hot rolled coil (HRC) market has continued to show signs of improvement, with local mills targeting more price hikes anticipating that the upward trend will persist further, particularly until the European Commission releases the results of its ongoing steel safeguard review, which are expected at the end of March, with the new regulations expected to take effect in April. In the import segment, business activity remains significantly affected by trade measures, with most offers moving sideways or up slightly over the past week.
More specifically, mills in northern Europe have been offering HRC at €620-640/mt ex-works for deliveries in the second quarter, mainly the same as last week, while the tradable prices have been estimated at €600-620/mt ex-works, up by €20/mt on the higher end of the range week on week. According to market insiders, most mills in the north are sold out of April delivery material and have started to offer May delivery coils.
“The Europeans are pushing prices up and denying prompt availability, offering at €630/mt DDP southern Europe,” a market insider told SteelOrbis.
In Italy, trade activity has remained less active, as most customers have maintained adequate stock levels and are in no rush to purchase material at current prices, with most opting to await the outcome of the steel safeguard review. However, HRC offers from mills have been voiced at around €610-630/mt ex-works, up by €10/mt over the past week, with the higher end of the range corresponding mainly to offers for April delivery. “Italian mills are holding firm on their positions and aren't willing to negotiate,” the representative of one mill told SteelOrbis. At the same time, although some market insiders are still estimating the tradable prices at €590-600/mt ex-works, a producer stated, “Workable prices do not exist at the moment, as mills are firmly focused on a minimum of €620/mt ex-works, and no one In Italy can secure a base price at a lower level,” reflecting the views of most producers.
As for imports, the price range has been widening this week, reaching €550-600/mt CFR, against €530-590/mt CFR last week. The lower end of the range corresponds to offers for ex-Indonesia HRC at €550/mt CFR, while indicative offers from South Korea and India have been voiced at €560/mt CFR. According to sources, import deals from Asia have been minimal in the region except for Indonesia and Malaysia which have managed to sell around 150,000 mt in total of HRC during past weeks at $550/mt CFR. This week, meanwhile, one transaction for ex-Japan HRC has also been reported at $475/mt FOB in the UK.
At the same time, following several deals for ex-Turkey HRC last week and two weeks ago at around €575-580/mt CFR, duty paid, this week most offers from Turkish suppliers have been estimated at €590-600/mt CFR, duty paid, mainly the same as last week.