Steel HRC prices inch upward across Europe

European prices for steel hot-rolled coil inched upward on support from trade control measures and improved buying, with short-term expectations cautiously positive, Fastmarkets heard on Tuesday February 4.

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €593.75 ($609.44) per tonne on Tuesday, up by €2.50 per tonne from €591.25 per tonne the previous day.

The index was also up by €5.31 per tonne week on week and by €28.75 per tonne month on month.

Trading activity in the region was still “far away from booming,” market sources said, but has recently picked up from the low levels at the beginning of January.

Buyers estimated tradeable values for HRC in the region at €580-600 per tonne ex-works.

Most market sources agreed, however, that it was impossible to get HRC from a first-tier supplier at a price “much below €600 per tonne ex-works.”

Major HRC producers in Northern Europe were largely sold out for first-quarter delivery coil. Target offer prices for April-delivery material were currently in the range of €620-630 per tonne ex-works, but this had not yet been achieved in deals.

“There is room for a minor price rise in the coming weeks, but demand is too weak to support any big rebound. I guess we will see some real import shortages in the second half of the year – that might help mills to gain a stronger position in negotiations,” a buyer in Germany said.

“We cannot see any shortage of [HRC] in the market yet,” a second buyer said. “There is plenty of material still in ports, but getting new tonnages from imports is likely to become increasingly difficult when [the EU’s] reviewed [import] safeguards are in place.”

Market sources expected to see tougher trade defense measures in the second quarter, and therefore a stronger reliance on domestic steel, Fastmarkets understands.

The European Commission started a review of steel safeguard measures on December 17 last year. The review was expected to be concluded by March 31, with any adjustments to the current measures expected to come into force the following month.

In Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy, at €588.33 per tonne on Tuesday, up by €0.83 per tonne from €587.50 per tonne on February 3.

The index was up by €5.83 per tonne week on week and by €25.83 per tonne month on month.

Italian buyers estimated tradeable prices around €580-590 per tonne ex-works, while offers were reported at €590-600 per tonne ex-works for March-delivery coil.

In terms of imports, HRC from Turkey was on offer to Italy at €590 per tonne CFR, including anti-dumping duty, industry sources told Fastmarkets.

From Asia, March-shipment HRC offers were heard at €570-580 per tonne CFR.

European buyers estimated the workable price for imported coil at €540-550 per tonne CFR.

Published by: Julia Bolotova