Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €554.38 ($605.13) per tonne on Tuesday, up by €5 per tonne from €549.38 the previous day.
The index was up by €9.00 per tonne week on week, but down by €11.87 per tonne month on month.
Mills in Northern Europe were heard offering HRC at €580-600 per tonne ex-works.
Buyers’ estimates for workable prices were reported closer to €540-550 per tonne ex-works, however.
Some deals were reported at €550 per tonne ex-works, industry sources told Fastmarkets.
“Trading activity has improved recently on some restocking. Significant volumes were booked these days. Some producers have sold out their volumes for [the fourth quarter],” a buyer source told Fastmarkets.
A second buyer source told Fastmarkets that some mills in Northern Europe were already selling January-delivery material.
Producers in the region were bullish, insisting on receiving the targeted offer prices, according to this source.
“[Producers] have undertaken the ‘take it or leave it’ approach with buyers,” the source said, adding that some buyers were ready to pay the requested prices.
But buyers remained very cautious, carefully estimating the HRC volumes they would like to book, the second buyer said.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €548.75 per tonne on Tuesday, up by €3.75 per tonne from €545.00 per tonne the previous day.
The Italian index was up by €8.75 per tonne week on week, but down by €21.25 per tonne month on month.
Sources reported an offer from one local supplier at €580 per tonne ex-works, which is €10 per tonne higher compared to offers heard the previous week.
Discounts of €15-20 per tonne were possible for big volumes, sources told Fastmarkets.
Lead times for Italian HRC were reported to be shorter compared with Northern Europe. “The negotiations for December-delivery material have not started yet,” a third buyer said.
Buyers estimated tradable prices to be no more than €540-555 per tonne ex-works.
“The market in Italy remains quiet. Buyers are very cautious, just replenishing their stocks,” a fourth buyer told Fastmarkets.
Asian-origin HRC was heard offered to Italy at €550-560 per tonne CFR. Turkish material was offered to Italy at €580 per tonne CFR, including the anti-dumping duty, Fastmarkets understands.
The fourth buyer added that uncompetitive import offers, combined with mills’ intention to cover their production costs by offering HRC at a higher price, might result in increased HRC prices in the medium term.
