European HRC prices have been in stalemate the last few weeks, with the coils market riding out the lag seen in overall demand, and with cheaper imports still playing a role in domestic price development. However, market sources have said prices were mostly regulating after the record-breaking peaks seen one month ago, sources told S&P Global Platts Aug. 3.
“If you refer to a price that no one paid in a difficult situation of sourcing allocation, prices have been correcting from a high peak that was not reflected on the market,” an Italy mill source said. “People paid very high prices for some allocation but again these were small volumes.”
The source recalled Arcelor Mittal’s last increase in HRC prices to Eur1,200/mt ex-works Ruhr as a “peak no one paid.”
The objective from producers has been to maintain high prices throughout the slow demand period, betting on increased activity in September and reluctance from customers to buy imports due to increased protectionist measures.
HRC import prices were heard at Eur985/mt CIF Italy Ports from the Far East.
Sources were awaiting the outcome of impending anti-dumping investigations on hot-dip galvanized material from Turkey and Russia.
“Turkey and Russia has been a good opportunity to buy HDG in Europe, but with ant-dumping it will be difficult to buy. There is more CRC availability from import,” the same Italy mill source said.
The European Commission announced June 24 that it has opened an investigation into hot-dip galvanized coil imports from Turkey and Russia, saying imports of certain corrosion-resistant steels originating from these countries were being dumped.
— Amanda Flint