This week has brought some changes to the European HRC market as many suppliers have started to claim that domestic HRC prices have already reached the bottom given that most mills both in Italy and in the north of Europe have started to make attempts to raise their offers. In the import segment, the situation is still sluggish in terms of sales due to the lack of clarity regarding the review of EU safeguard measures, though prices have kept firming up, mainly amid currency fluctuations, this week.
Following significant drops in local HRC prices in Europe during previous weeks, this week workable prices in the EU have settled at around €630-640/mt ex-works, against €610-630/mt ex-works last week. More specifically, by the end of this week, local suppliers in Italy have been refusing to go lower than €630/mt ex-works, while mills have started to aim offers at €650/mt ex-works, versus €630/mt last week. “In Italy, Arvedi and Marcegaglia have started to ask higher offers from Monday, and we have heard EU mills will aim for further increases to €670-680/mt ex-works,” a market insider told SteelOrbis.
“European mills have wanted to give the signal that the price drop has finished and to close orders because they need them,” a market insider told SteelOrbis.
Local tradable HRC prices in northern Europe have been voiced at €630-640/mt ex-works, up by €10/mt week on week, though mills’ offers have already been heard at €650-670/mt ex-works, up by €20-30/mt week on week. Besides, offers for ex-Italy HRC in Germany have been reported at €670/mt delivered, up by €10/mt over the past week.
“Service centres and distributors had orders waiting for market stabilization, and now we will see medium restocking activity with a controlled rebound and some period of stable prices,” a trader in Spain said.
In the meantime, currency fluctuations have affected import HRC prices in Europe this week, with most offers showing a slight upward movement. Specifically, most ex-Asia HRC offers have been heard at €600-610/mt CFR southern Europe, up by €10/mt week on week. According to sources, some cheaper offers for ex-Vietnam HRC are still heard in the market at around $630-635/mt CFR, which translates to around €586-591/mt CFR. “With the safeguard duty situation, I doubt Vietnam’s HRC can be interesting option now,” a local trader said, adding, “There is some talk about a quota of 550,000 mt per year, while others say there will be no changes in EU safeguard measures.”
Furthermore, offers for ex-Egypt HRC have been reported at around €610-615/mt CFR southern Europe, while indicative offers for ex-Turkey HRC have been estimated at around €625/mt CFR, including duty.
$1 = €0.93