However, according to market participants, the current positive trend in the European HRC market is not so much demand-driven but related to the lack of strong competition from imports.
The latest steel safeguard review of the European Commission, launched in December, sparked uncertainty among local buyers, decreasing their appetite to purchase imported HRC. Thus, European customers started to rely more on domestic production.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €603.33 ($625.74) per tonne on Thursday, up by €0.83 per tonne from €602.50 per tonne on Wednesday.
The Northern European index was up by €3.33 per tonne week on week and by €30.83 per tonne month on month.
One leading European mill has started offering April-May delivery HRC at €660 per tonne ex-works or delivered, depending on the destination, since last week, Fastmarkets understands.
Other mills in Northern Europe were heard offering HRC for delivery in the second quarter of the year at €610-630 per tonne ex-works.
Some transactions were reported at €600 per tonne ex-works, industry sources told Fastmarkets.
Buyers estimated the workable market level for HRC in Northern Europe at €595-605 per tonne ex-works.
Meanwhile, in Southern Europe, Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was calculated at €593.57 per tonne on Thursday, up by €0.24 per tonne from €593.33 per tonne on Wednesday.
The index was down by €0.18 per tonne week on week and up by €28.57 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 Italy 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’ estimates for the workable market level for HRC in Italy were at €590-600 per tonne ex-works, with the upper end of the price range considered challenging for local customers.
“[Levels at] € 600 per tonne ex-works [are still] a problem for the buyers at this stage because the downstream market is not [performing] great, but apparently there are no alternatives,” a buyer source based in Italy told Fastmarkets.
In terms of imports, no fresh offers or deals were heard in the European market.
