Uptrend in EU HRC market slows down

Wednesday, 09 June 2021 16:57:28 (GMT+3)   |   Brescia
       

Transaction prices for hot rolled coil (HRC) in the EU market have increased by €15/mt on average in the first week of June, reaching €1,130-1,150/mt ex-works. Prices have continued to be supported by the shortage of material both locally and in the import market, although the uptrend has slowed down recently due to a change in sentiment. In fact, buyers have been more cautious about making purchases, as they fear prices may decrease before they receive their orders, i.e., in the late third quarter or early in the fourth quarter mostly. In particular, demand from the automotive sector has decreased lately, in part due to a lack of semiconductors globally, but despite this flat steel supply has remained very low. As reported previously, on May 28 leading global steelmaker ArcelorMittal increased its coil offers for the eighth consecutive week, by €20/mt across Europe, to €1,170/mt ex-works in the case of HRC, while it did not announce any price increase last week. Meanwhile, this week sources told SteelOrbis that Arvedi, the second largest steelmaker in Italy, is offering HRC at €1,180-1,200/mt ex-works. Although buyers have started to resist the price increases, most sources believe that supply shortages will continue to be witnessed in the coming months. Meanwhile, the European market is still awaiting a decision on the import safeguard measures, although rumours indicate that the European Commission is likely to extend them by one year, with only a five percent increase in quotas.


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