This week, European suppliers have been increasing their offer prices for HRC, citing mounting costs.
“The lowest offers are no longer [available] but buyers are still hesitating,” a buyer source in Europe said. “[There is] no change in real demand. Only an apparent demand improvement could support the price rise that is being asked [for] – if buyers need to restock before the end of 2024.”
Offer prices for November-December delivery HRC were heard at €560-570 ($614-625) per tonne ex-works. And for larger tonnages, prices of €540-550 per tonne exw were still possible, sources said.
Buyer sources estimated tradable values at €530-540 per tonne exw, but mill sources said the lower end of that range was no longer acceptable.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €545.38 per tonne on Tuesday, up by €7.30 per tonne from €538.08 per tonne on October 7.
The index was up by €8.39 per tonne week on week but down by €35.37 per tonne month on month.
In Southern Europe, meanwhile. Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €540.00 per tonne on Tuesday, unchanged from October 7.
The Italian index was up by €7.00 per tonne week on week, but down by €40.24 per tonne month on month.
Market participants reported transactions for November-delivery HRC in Italy at €540-555 per tonne delivered (€530-545 per tonne ex-works).
But after ArcelorMittal’s move last week to increase HRC prices in Europe by €40 per tonne, Italian suppliers were also mulling a price rise, Fastmarkets heard.
“For December delivery, European and Italian mills want a €20-40 per tonne price rise as a first step,” a buyer in Italy said.
Sources also reported high offers for imported HRC in the week started October 7.
New offers from Asia of HRC for November shipment to Italy were reported at €550-560 per tonne CFR, compared with €520-540 per tonne CFR in late September.
But sources told Fastmarkets that this price was totally unworkable for the European market. Buyer price ideas for Asia-origin coil were no higher than €500-520 per tonne CFR, they added, but no such offers were available in the market.
Published by: Julia Bolotova
