The positive mood among producers was mainly fueled by limited import availability related to the current steel safeguard measures review of the European Commission, which sparked uncertainty in the market for imported HRC.
Any possible changes were expected to take effect in April, which limited the interest of the European buyers in imported HRC, Fastmarkets understands.
In addition, the European Commission started an anti-dumping investigation against HRC imports from Egypt, India, Japan and Vietnam in August 2024. The probe is expected to continue for about a year, but provisional measures could be imposed.
The current bullish sentiment in the HRC market was also supported by some improvement in buying, especially in the region of Northern Europe, industry sources told Fastmarkets.
Last week, ArcelorMittal announced higher offers for April/May delivery HRC in the European market, reaching €660 ($682) per tonne ex-works or delivered, depending on the destination.
But these levels seemed to be the upper end of the offer price range, with many producers in Northern Europe still offering the material at €610-620 per tonne ex-works, Fastmarkets understands.
Buyers’ estimations for the tradable market level were at €595-600 per tonne ex-works.
However, no major deals with HRC were heard in the Northern European market on Wednesday.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €602.50 per tonne on Wednesday, up by €1.10 per tonne from €601.40 per tonne on Tuesday.
The Northern European index was up by €3.54 per tonne week on week and by €37.08 per tonne month on month.
Meanwhile, in Southern Europe, Fastmarkets’ corresponding daily steel hot-rolled coil index, domestic, exw Italy was calculated at €593.33 per tonne on Wednesday, down by just €0.42 per tonne from €593.75 per tonne on Tuesday.
The index was up by €4.58 per tonne week on week and by €30.83 per tonne month on month.
Local suppliers were heard offering April-delivery HRC at €600-630 per tonne delivered, which would net back to €590-620 per tonne ex-works.
One European supplier was offering HRC with second-quarter lead times to the nation at €660 per tonne delivered, which would be equivalent to €650 per tonne ex-works, Fastmarkets understands. According to industry sources, discounts of €10-20 per tonne were possible.
Buyers estimated the workable market level at €585-600 per tonne ex-works, but no major deals were heard for domestic HRC in Italy.
“The stocks of the Italian customers are medium-high, no one is in a rush to buy material,” a trader source based in Italy told Fastmarkets. The source added that the positive trend observed with the recently rising HRC prices was only driven by limited imports.
Indonesia was heard offering HRC to the Italian market at €540-560 per tonne CFR, Fastmarkets understands. Despite the trade risks, some transactions were reported at €540 per tonne CFR, but the details were unclear by the publication time.
Material from South Korea and Japan was on offer to Italy at €580 per tonne CFR, industry sources told Fastmarkets. However, local buyers deemed these levels unworkable.
Turkey was heard offering HRC to Italy at €590-600 per tonne CFR, including the anti-dumping duty, but these levels were also considered too close to the domestic prices to be tradable.
