European hot-rolled coil (HRC) prices firmed today as mills hiked offers

Argus’ daily northwest EU HRC index rose to €532.50/t ex-works, up by €10.50/t on the day. The Argus daily Italian HRC index rose by €3.50/t to €534.50/t ex-works.

ArcelorMittal increased its HRC offer by €40/t compared with its last achieved prices, while NLMK La Louviere increased its prices by €20-30/t. Italian steelmaker Arvedi has raised its prices by €40/t. Other mills were reportedly following suit, on a rise in China, which has pushed up import offers and mill costs.

Mills often try to increase prices around this time of year, ahead of an industry fair in Germany and the start of automotive contract talks. Demand remained low, with automakers continually postponing contractual tonnages — some said carmakers hope to sign 2025 deals at lower levels, so are postponing offtake until then. Mill sources suggest that there could be a technical rebound in automotive offtake come the first quarter, partly as a result of this.

The weak demand environment remains an issue for service centres (SSC), many of which are trying to destock ahead of the financial year-end to increase disposable capital. Sources suggest that this should lessen in December.

Mill executives said buyers have been trying to add tonnage to existing deals, which they have refused. ArcelorMittal is firm on €590/t and has withdrawn all offers below that in north Europe, sources said. One service centre was offered a small amount of HRC at €605/t base delivered by a large mill, while another buyer reported offers at €580/t base and above.

Buyers in Italy welcomed offer increases, hoping that this would stimulate end-users to start purchasing. But a large portion of the market remains sceptical over whether there is enough demand to support the increase. One source said large buyers today were still seeking €520/t base delivered Italy. Market participants expect trading to occur at around €550/t base delivered Italy.

Turkish producers have followed EU mills, and are offering at $610-620/t fob, which places them close to some EU offers in the Italian market of €580/t base delivered. South Korean material was reported sold at €550/t cif Italy. Indian material was last heard sold below these levels, but not confirmed.

“The mood is changing. Also import is more prudent and they are closing very fast every negotiation in order to move the price,” an SSC source said.

The amount of material clearing customs remained a concern, especially with demand as subdued as it has been. Vietnam and Japan look set to face safeguard duties of a minimum of 17.7-19.3pc depending on final clearance volumes.

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Lora Stoyanova

lora.stoyanova@argusmedia.com