Hot-rolled coil (HRC) prices in Europe are currently driven by lower imports and higher energy and transportation costs rather than demand, sources told Fastmarkets on Tuesday November 10.
HRC prices in Europe are currently driven by lower imports and higher energy and transportation costs rather than demand, sources told Fastmarkets on Tuesday November 10.
An Italian buyer source reported deal levels in the country at €750 ($839) per tonne ex-works, versus unofficial targets of €780 per tonne ex-works.
“But I believe the gap will be closed till Christmas as import is too tight,” he said.
A seller source meanwhile reported offers within the range of €750-765 per tonne ex-works and indications of tradable levels within the range of €740-760 per tonne.
Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Italy, was calculated at €750.31 per tonne on Tuesday November 10, up by €4.48 from €745.83 per tonne on Monday November 9.
The index was up by €4.31 per tonne week on week and up by €7.81 per tonne month on month.
In Northern Europe, a re-roller was heard selling material at €780 per tonne delivered, equivalent to €760-765 per tonne ex-works. The same re-roller is said to be negotiating at €790 per tonne delivered, equivalent to €770-775 per tonne ex-works.
Other mills were heard selling within the range of €770-780 per tonne delivered or €750-765 per tonne ex-works.
A German buyer confirmed purchasing some lots at €760 per tonne but said that in new negotiations mills are targeting €775-795 per tonne ex-works, pushed by tighter imports and higher energy and transportation costs.
The general range of offers was reported at €770-800 per tonne delivered or €750-785 per tonne ex-works.
Separately, the market leader was heard offering its HRC at €820 per tonne delivered or ex-works, but this price was not included in the index calculation as it was too high.
Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Northern Europe, was calculated at €762.50 per tonne on Tuesday November 10, down by €1.50 per tonne from €764 per tonne on Monday November 9.
The index was up by €4.31 per tonne week on week and up by €7.81 per tonne month on month.
