Prices in European HRC market remain largely stable in week to March 31

Sluggish demand resulted in minimal activity in the European hot-rolled coil market during the week to Friday March 31, after buyers opted for hand-to-mouth bookings.
Major steelmakers are expected to target a price of €900 ($977) per tonne ex-works for July-delivery coil despite continued weak consumption, sources told Fastmarkets.

Market participants remained in wait-and-see mode in the week to March 31, in anticipation of producers announcing official increases in offer prices.

With demand low, market participants remained cynical as to whether these price rises were justified or realistic, Fastmarkets heard.

Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €856.25 per tonne on March 31, up by €8.62 per tonne from €847.63 per tonne a day earlier.

The latest calculation of the index was also up by €3.12 per tonne week on week and up by €62.50 per tonne month on month.

At the beginning of the week, offers from integrated mills in Northern Europe were reported at €850-880 per tonne. Towards the end of the week, mills informally offered €900 per tonne ahead of official announcements.

Through the week, buyers’ estimates of a workable price were around €830-860 per tonne ex-works.

Constrained supply has continued to pressure prices upward. Ongoing weak demand will likely create significant resistance to any further uptrend, buyers reported.

Fastmarkets’ daily steel HRC index, domestic, exw Italy was calculated at €845.00 per tonne on March 31, up by €9.62 per tonne from €835.38 per tonne the day before.

The latest calculation of the index was up by €18.49 per tonne week on week and by €60.00 per tonne month on month.

Minimal volumes were traded in the Italian market amid ongoing slow demand.

Through the week, offers from domestic producers were heard around €850-860 per tonne ex-works for June delivery.

Meanwhile, buyers’ estimates of achievable prices were closer to €820-840 per tonne ex-works.

Mills in the country were able to offer June-July delivery coil, sources said.

Imports
Long lead times from domestic mills has increased appetite for competitively prices import prices.

On March 27, South Korean steel mill was offering HRC to Italy at €770 per tonne CFR for June shipment, sources said.

A day later, HRC offers from one Japanese mill to Italy were heard at €770-775 per tonne CFR for June shipment.

The same day, two trading sources in the region reported an offer from South Korea at €770 per tonne CFR, for May-June shipment.

HRC offers from one Japanese mill to Italy were heard at €770-775 per tonne CFR for June shipment in the middle of last week.

A mill in India was aiming for €750 per tonne CFR, also for June shipment, according to sources.

HRC offers from South Korea and Vietnam were heard at €770 per tonne CFR, for May-June shipment to Italy.

On March 31, Japan-origin coil was on offer at $830-840 per tonne CFR for June shipment, with deals for some limited lots reported within that range earlier in the week.

The same day, sources reported offers from Turkey at €800 per tonne CFR for June shipment.

Published by: India-Inés Levy