Hot rolled coil prices in Italy and wider Europe have remained largely stable on-week, following a moderate increase in transaction values observed earlier this month.
Producers in Italy have strived to increase prices to €600-610/tonne ($624.9-635.4) delivered in December; however, this price point has not yet been reflected in contracts, according to knowledgeable sources.
The market is currently experiencing a lull, characterised by a lack of transactions as the holiday period approaches, during which producers will initiate extended production stoppages.
Contract prices are currently at approximately €560-570/t delivered, with any bids falling below this threshold being declined. Numerous buyers indicate there are no accessible import alternatives other than Turkish-origin HRC, which is being quoted at €580/t cfr duty paid. Service centres that spoke to Kallanish are not considering purchases from the import market, as even the prices delivered from Turkey appear to be less competitive compared to domestic HRC.
On 1 January, EU HRC buyers will clear material imported from Asia through customs. A source believes the tonnage of HRC at ports that exceeds quotas is limited after a significant reduction in purchases from Asia in recent months, driven by EU import restrictions.
Numerous service centre buyers in Italy have ceased operations this week and are continuing to implement workforce layoffs. A number of mill customers are suspending operations for one month. Downstream demand is reported low since November.
Meanwhile, ArcelorMittal is increasing coil prices by €20/t in Europe for delivery in the new year. Lead times at the steelmaker’s plants in Europe are now extended to February and March. For some downstream products, a few allocations are left for March and bookings will spill over into the second quarter.
For the few February allocations left of HRC, new asking prices are at €630/t base delivered. Prices for hot-dipped galvanised coil are also being pushed up, to €750/t base delivered.
Natalia Capra France
