The European hot rolled coil (HRC) market has remained largely stagnant this week, with trading activity subdued in line with seasonal trends. Domestic HRC prices are mostly unchanged, showing only a marginal upward movement after leading producer ArcelorMittal announced its intention to raise prices by €20/mt for October delivery. At the same time, market participants reported limited spot demand, with buyers largely adopting a wait-and-see approach amid uncertain consumption trends and stable inventory levels. Import offers have continued to edge higher, reflecting firming global prices, but concluded deals were scarce. Most successful transactions have been closed at competitive or discounted prices, as buyers have remained reluctant to commit to higher-priced material in the current market environment, also citing concerns over the potential cost implications of the EU’s Carbon Border Adjustment Mechanism (CBAM).
Specifically, according to sources, this week leading European producer ArcelorMittal has increased its offers for October delivery HRC by around €20/mt to €610/mt ex-works in northern Europe. At the same time, most local HRC prices from mills in northern Europe, for mainly October delivery, have been estimated at €580-590/mt ex-works, compared to €580/mt ex-works last week, while the tradable price level has settled at €560-570/mt ex-works levels, up by €10/mt week on week.
Meanwhile, in Italy, indicative offers from mills have been estimated at €550-570/mt ex-works, for September and October deliveries, the same as last week. However, according to sources, customers have still been aiming for €525-530/mt ex-works, the same as last week.
In the meantime, while most buyers’ target price for import HRC has remained in the range of €450–500/mt CFR, depending on the supplier, some overseas mills have raised their offers this week. According to sources, a deal for around 80,000 mt of ex-Indonesia HRC is reported to have been signed at the end of last week at around $550/mt CFR Italy, which translates to around €475/mt CFR.
Besides, while offers for ex-India HRC have been estimated at around €515/mt CFR southern Europe, the same as last week, a deal for ex-India coils has been signed at $598-600/mt CFR Antwerp, which translates to around €516-518/mt CFR.
Furthermore, offers for ex-Turkey HRC have been voiced at €510-520/mt CFR southern Europe, duty included, compared to €500-520/mt CFR last week. Offers for ex-Algeria HRC have settled at €520/mt CFR, up by €5/mt week on week.
$1 = €0.86