Before the New Year holiday, hot rolled coil (HRC) prices in the European domestic market were standing at €460-480/mt ($607-634/mt) CPT, until producers raised their prices by the second week of January. As a result, HRC prices in Europe have this week reached €520-545/mt ($686-719/mt) CPT for March shipments, having increased to €500-520/mt ($660-686/mt) CPT in previous weeks.
In the Italian domestic market, local producers' HRC base prices are still standing at €520-530/mt ($686-700/mt) ex-works. However, Italian mills are expected to increase their flat steel prices throughout February due to increased costs, despite weak demand in the country.
In the Portuguese flat steel market, HRC offers given from Italy are standing at the base price level of €540-545/mt ($713-719/mt) CPT, while the HRC sales prices of steel service centers are currently hovering at around €600-610/mt ($792-805/mt) ex-warehouse. Nevertheless, flat steel demand in the country is very low and market activity has remained fairly weak.
Last week, ArcelorMittal Spain increased its HRC base price by €30/mt ($40/mt) for March shipments, to €550/mt ($726/mt) ex-works. Market players predict that the producer may push its HRC base price up further to the range of €570-580/mt ($752-766/mt) ex-works in February.
€1 = $1.32