Southern European HRC prices to see upward adjustment

This week, Italian flat steel producer Ilva and ArcelorMittal Spain are expected to announce their new export offers for February production hot rolled coil (HRC), and will probably increase their prices as compared to last month. While the weakness of the euro against the US dollar provides support for such increases, poor demand may limit the increase margin. In the European domestic market last week, HRC offers were standing at €500-510/mt ($640-653/mt) CFR.
 
Portuguese market players state that they expect Italian and Spanish HRC import offers to stand at the minimum base price level of €520/mt ($666/mt) CIF. In the meantime, steel service centers' HRC prices in Portugal, where flat steel demand is still weak, are currently standing at €580-590/mt ($742-755/mt) ex-warehouse. Domestic prices are foreseen to show an increase during this week.
 
According to Greek market sources, flat steel demand in Greece is fairly low. As a result of the price increases made despite poor demand, transaction activity in the country is anticipated to slow down further. While Greek buyers are not showing interest in Turkish producers' HRC offers at $650-660/mt, finding this price range to be on the high side, European producers' offers on euro basis now seem more competitive, due to the weakness of the euro.