Domestic HRC business activity in the EU has remained at moderate levels this week with some price increases being seen in certain regions, mostly due to some production issues faced by a few mills, particularly in Italy and Germany.
The general stocks of HRC across Europe is still at medium to high levels, but sentiment remains firm as regards pricing remains due to strong market fundaments and high risks facing imports. The import activity for HRC has diminished this week in Europe since many believe the quota for some origins has been already closed and exceeded for Q1 2027 while others prefer to refrain from imports due to CBAM uncertainties to be faced in Q1-Q2 next year.
In Italy, according to sources, amid the issue with production at Arvedi, local HRC prices have moved up by €20-30/mt in the latest targets to €760-780/mt delivered, while the transportation cost is estimated at roughly €10-25/mt depending on the region. In Spain, the workable price level has improved by €5-10/mt to €740-745/mt ex-works, while in the northern part of the EU the price levels are at €740-760/mt and up to €770/mt ex-works. Meanwhile, a source has reported that one mill in the Benelux region has been selling at as low as €725-730/mt ex-works, but the level is not widespread in the EU. In eastern Europe, some of the producers have increased offers by €20-30/mt to €760/mt delivered, while others remained at €765-775/mt and up to €790/mt CPT.
In the import HRC segment, duty paid offers from Turkey have been reported at $700-710/mt or €625-635/mt CFR, up by €5-10/mt over the past week. The latest offers from India have been reported at $730-740/mt and up to $750/mt CFR (€650-670/mt) CFR, up from the latest deals at $715-725/mt CFR. “Both India and Turkey seem to have sold a lot [of HRC] for Q1 2027. They will fight for the FTA [CSQ] and it is going to be a mess,” a European trader told SteelOrbis. “So, we have decided not to import any HRC,” he added.
Most of the HRC import offers continue to be heard on DDP basis since the buyers are aiming to minimize their risks as much as possible. Japan and Taiwan are at €770/mt while South Korea is offering at as high as €790/mt, while the workable levels are still considered to be closer to €730-750/mt DDP.
€1 = $1.12
Author: SteelOrbis Editorial Team
