As expected, transaction prices in the EU hot rolled coil (HRC) market inched up further after local mills increased their offers early last week. In the Italian domestic market, HRC base prices have reached €450-460/mt ex-works, versus €440-460/mt level recorded last week. At the same time, prices have increased from €450-470/mt to €465-480/mt in northern Europe, ex-works. The average HRC price in the EU market has thus returned to pre-COVID-19 levels after bottoming out around €380/mt in June. Local price increases have been supported by the low competitiveness of import offers, improving demand, reduced output, longer lead times, high iron ore prices, and increased slab prices.
According to sources, ex-Turkey HRC offers are at €460/mt CFR per December shipment, while ex-India offers are at €480/mt CFR for January shipment. As reported previously, sources believe that HRC prices will increase further in the coming weeks, exceeding the €500/mt threshold. ArcelorMittal has been seeking price levels of €490/mt in the Italian market and of €530/mt in northern Europe.