European hot-rolled coil prices were broadly stable on Friday August 26 amid subdued activity, but producers have started raising offers on surging costs, Fastmarkets heard.
Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe at €720.00 ($718.65) per tonne on Friday, unchanged from the previous day.
The latest calculation of the index was down by €30.00 per tonne week on week, and down by €137.50 per tonne month on month.
Transactions for HRC in Northern Europe were reported at €70-730 per tonne exw, but for small tonnages.
Trading activity in the region has been sluggish amid persisting overstocking, poor end-user demand and an unclear post-summer price trend.
Most buyers estimated the workable price for HRC in the region to be €700-750 per tonne exw.
Despite weak market fundamentals, ArcelorMittal increased its offer prices for coil on August 26 amid surging energy costs across Europe, several trading sources told Fastmarkets.
New offers of HRC from the mill were heard at €800 per tonne ex-works for October delivery and €850 per tonne for November delivery, several sources told Fastmarkets.
But market sources were quite skeptical about the rise for now.
“It is a cost-driven price increase, not demand driven. ArcelorMittal usually [increases prices] to send a message to the market. We will see how the market reacts in the upcoming weeks,” a distributor in Northern Europe said.
Fastmarkets’ calculation of its daily steel HRC index, domestic, exw Italy was €705.00 per tonne on Friday, also unchanged from the previous day.
The latest calculation of the Italian index was down by €35 per tonne week on week and down by €75 per tonne month on month.
The calculation was based on buyers’ estimates of achievable prices at €700-710 per tonne exw.
As a result of summer maintenance closures, there was minimal trading activity, Fastmarkets heard.
Demand for HRC in the nation has also been sluggish due to overstocking and a wait-and-see attitude among buyers.
Published by: Julia Bolotova
