In the European flat steel market, expectations of an increase in prices strengthened when Italian steelmaker Ilva halted its hot rolled coil (HRC) production on February 2 due to modernization works. During the past week, demand in the market has continued to be at decent levels. Market sources strongly believe that prices are likely to increase since import HRC supplies are limited amid the ongoing antidumping duty investigation in the EU, and also because of the reduced HRC supply caused by Ilva halting its production. However, the price increase anticipated in the EU flat rolled market is expected to be moderate due to high HRC inventories in the Chinese domestic market, decreases in both Chinese domestic and export HRC prices following the Chinese New Year holiday, and the ongoing softening seen in ex-CIS HRC prices. Market sources indicate that, in the event of a sharp increase in the EU flat rolled market despite the softening of global HRC prices, HRC demand in the region will be negatively impacted.
Over the past week, prices in the local European flat steel market have remained stable, with hot rolled coil (HRC) prices standing at €520-570/mt ($551-604/mt), cold rolled coil (CRC) prices at €650-670/mt ($689-710/mt) and hot dip galvanized product offers at €640-670/mt ($678-710/mt), all ex-works. HRC offers given to the EU from India and Turkey also remained stable, respectively at $500-510/mt FOB and at $510-515/mt FOB.
€1 = $1.06