At the same time, mills were heard to still be bullish, pushing for slightly higher prices for HRC with delivery in the second quarter of the year, Fastmarkets understands.
Last week, the European Commission notified the World Trade Organization (WTO) of adjustments to the region’s steel safeguard measures, affecting annual liberalization, introducing caps and changing residual tariff rate quota (TRQ) access for a number of steel products, including HRC, Fastmarkets reported.
The proposed amendments are expected to enter into force on April 1.
In addition, the European Commission announced provisional anti-dumping (AD) duties for HRC imports originating from Egypt, Vietnam and Japan, with the new measures set to be imposed as of April 7.
Both moves were expected to influence the market of imported HRC to Europe, and in turn the domestic prices. But sentiment among industry sources remained mixed, with some participants hoping for additional information on the announced measures.
A trader source told Fastmarkets that import access was clearer now, but the steel sector should wait for additional clarification from the European Commission to fully understand the retroactive applicability of the proposed anti-dumping duties.
The source added that there would not be an immediate effect on the domestic HRC prices.
“Real demand is still weak and the European mills’ price policies, meant to reflect the new safeguard measures, would probably take some time,” the trader added.
A second trader source told Fastmarkets there was no ground for further price increases.
“The [announced] safeguard measures for HRC are not as harsh as expected, and real demand is still low,” the second trader said.
But the source added that mills might still try to increase June delivery HRC prices, speculating on limited supply, because of ArcelorMittal’s plans to idle its Dunkirk blast furnace for three months and the force majeure circumstances with Salzgitter.
A distributor source from the Benelux region confirmed that mills would try to rise HRC prices for June delivery by about €10-20 ($10.90-21.81) per tonne.
A leading European producer was rumored to offer such material at €670-680 per tonne delivered, which would net back to €660-670 per tonne ex-works.
But most offers of May-June delivery HRC were heard at €640-660 per tonne ex-works in Germany and the Benelux area, Fastmarkets understands.
Buyers’ estimations for the tradeable market level in Northern Europe were at €630-640 per tonne ex-works.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €636.67 per tonne on Monday, up by €0.67 per tonne from €636.00 per tonne on March 14.
The Northern European index was up by €4.79 per tonne week on week and by €31.67 per tonne month on month.
In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was calculated at €620 per tonne on Monday, unchanged from March 14
The index was stable week on week but up by €25.00 per tonne month on month.
Offers of domestic HRC with delivery in the second quarter of the year were heard at €640 per tonne delivered, which would net back to €630 per tonne ex-works, Fastmarkets understands.
But buyers’ estimations for the tradeable market level were at €610-620 per tonne ex-works.
A third trader source based in Italy told Fastmarkets that domestic HRC prices were largely flat in the past two or three weeks. But according to the source, local suppliers would start pushing for higher prices soon.
The market for imported HRC to Europe remained largely quiet on Monday.
South Korea, Taiwan, and India refrained from making fresh offers to the European market, sources told Fastmarkets.
Indonesia was heard offering HRC to Italy at €540 per tonne CFR, and slightly higher to Northern Europe at €550-560 per tonne CFR.
Saudi Arabia was also heard offering HRC to Northern Europe at €600-605 per tonne CFR.
Julia Bolotova in Brussels contributed to this report.
