Demand on the rise in Italian HRC market; Northern Europe remains quiet

The European hot-rolled coil market remained quiet on Monday July 10, with few new trades reported. Prices were stable in the Northern European HRC market, while in the Italian market there was a slight price increase, which resulted from a reported improvement in trading.

Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €680 ($745.76) per tonne on July 10, down by €2 per tonne from €682 per tonne on July 7.

The latest calculation of the Northern European index was stable week on week but down by €20 per tonne month on month.

Buyers in the region estimated tradeable values at €680 per tonne EXW for September-delivery HRC. Mill offer prices were reported at €680-800 per tonne EXW for September-delivery HRC.

“Northern European producers are trying to maintain higher offer prices but for large tonnages tradeable values are closer to €680 per tonne EXW,” a trader source told Fastmarkets.

In the week to July 7, mills in central Europe were reportedly targeting offer prices of around €750 per tonne EXW; however, this information was not widely confirmed by all market participants.

With trading slow and customers reluctant to restock, it remains uncertain whether the market will accept any further price rises.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €668.33 per tonne on Friday, up by €6.33 per tonne from €662 per tonne on July 7.

The Italian index was up by €18.33 per tonne week on week and up by €13.33 per tonne month on month.

In the week to July 7, mills were making higher offers of €680-700 per tonne EXW amid slightly improved apparent demand.

Buyers in the region estimated tradeable values at €660-670 per tonne EXW for September delivery HRC, while offer prices were reported on July 10 at €670-680 per tonne EXW for September delivery.

Market participants have turned more bullish because of indications that apparent demand has improved, Fastmarkets heard.

“The market conditions seem to be getting firmer,” a trader source said.

“There seems to be small improvement in apparent demand; however, restocking remains at rock-bottom prices,” a buyer source in the region told Fastmarkets.

Sources generally expect customers to restock before mills cut production for the summer months.

Import HRC offers from Asia were reported at €620-630 per tonne CFR to Italy on July 10.

Published by: India-Inés Levy