Limited import availability and improved trading across Europe supported the domestic prices of HRC, Fastmarkets understands.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €626.25 ($656.82) per tonne on Wednesday, up by €5.62 per tonne from €620.63 per tonne on Tuesday February 25.
The Northern European index was up by €17.50 per tonne week on week and by €40.00 per tonne month on month.
Mills in Northern Europe were heard offering May-production/June-delivery coil at €650-660 per tonne delivered, which would net back to €640-650 per tonne ex-works.
“Customers who need the material are ready to buy at these prices,” a trader source based in the Benelux region told Fastmarkets, adding that the lower end of the price range was now considered typical for small-volume transactions.
According to the source, for bigger tonnages of around 10,000 tonnes, even lower prices could be negotiated.
Buyers’ estimations for the workable market level were at €600-630 per tonne ex-works.
One buyer source told Fastmarkets that €650-660 per tonne delivered, which would equal €640-650 per tonne ex-works, seemed a realistic tradeable price now.
Some transactions were heard at €630 per tonne ex-works.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €610.21 per tonne on Wednesday, up by €0.21 per tonne from €610.00 per tonne on Tuesday.
The index was up by €10.21 per tonne week on week and by €30.21 per tonne month on month.
Real demand for HRC in Italy was still weak, industry sources told Fastmarkets.
Italian producers were offering HRC at €620-640 per tonne delivered, which would net back to €610-630 per tonne ex-works, Fastmarkets understands.
Most Fastmarkets’ sources estimated the workable market level for HRC in Italy at €600-615 per tonne ex-works.
The market of imported HRC remained largely quiet.
Turkey was heard offering HRC to Italy at €590-600 per tonne CFR, including the anti-dumping duty.
Asian origin coil was on offer to Italy at €550-560 per tonne CFR, industry sources told Fastmarkets.
However, no significant deals were heard in the market.
