European HRC prices inch upward on limited imports, improved interest among buyers

The prices for European steel hot-rolled coil increased slightly on Wednesday January 29, supported by limited imports and increased interest among buyers, industry sources told Fastmarkets.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €588.75 ($614.17) per tonne on Wednesday, up by €0.31 per tonne from €588.44 per tonne on Tuesday January 28.

The index was up by €9.25 per tonne week on week and by €23.75 per tonne month on month.

Mills in Northern Europe were almost fully booked for the first quarter of the year, and only limited volumes were available for March-delivery material, Fastmarkets understands.

HRC offers for April/May delivery were heard at €620-630 per tonne ex-works, with some rumors in the market that mills could try to achieve even higher levels.

On Wednesday, no major deals were heard in the Northern European market.

Fastmarkets’ sources estimated the workable market level at €580-600 per tonne ex-works.

A distributor source based in Germany told Fastmarkets that two to three weeks ago, it looked impossible for the market to reach such levels, but now prices were moving up slightly.

Trading has also improved slightly, according to sources.

Fastmarkets calculated its corresponding daily steel hot-rolled coil index domestic, exw Italy at €587.50 per tonne on Wednesday, up by €5.00 per tonne from €582.50 per tonne on Tuesday.

The index was up by €9.17 per tonne week on week and by €25.00 per tonne month on month.

Local sources described the Italian market as less active.

According to a buyer source based in Italy, very few transactions were heard recently.

“Stocks are currently high. Most players are waiting to see how the market would develop, especially after the new steel safeguard review is over,” the buyer said.

The source added that real consumption in Italy was expected to remain low in the next months, and only apparent steel consumption could increase on some restocking if additional safeguard measures were imposed.

An integrated mill in Italy was heard offering end-March delivery material at €610-620 per tonne delivered, which would net back to €600-610 per tonne ex-works.

According to a second buyer source, the producer has started to offer HRC at €620 per tonne ex-works.

“There is almost zero appetite for import bookings. Thus, little by little, whoever needs to buy HRC buys domestically and pays €590-600 per tonne ex-works in the most recent deals,” the second buyer said.

Fastmarkets’ sources estimated the workable market level for domestic HRC to be €580-590 per tonne ex-works.

In terms of imports, Turkey was heard offering HRC to Italy at €560-590 per tonne CFR, including the anti-dumping duty, Fastmarkets understands.

However, according to industry sources, large volumes of around 30,000 tonnes could be negotiated at lower levels. Bids for such tonnages were heard at €540-550 per tonne CFR Italy.

Asian suppliers were heard offering HRC at €560-570 per tonne CFR Italy, but interest among buyers remained limited due to the trade risks.

Published by: Darina Kahramanova