ArcelorMittal increased its HRC offer prices across Europe by €40 ($44) per tonne, either ex-works or delivered depending on region at the start of the month and, since then, several other European producers have followed suit. But on Monday they were all still pushing to achieve their new prices with wary buyers, Fastmarkets understands.
Buyers remain cautious despite the slight improvement in apparent demand and only limited volumes were traded, sources said.
Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe, at €549.38 per tonne on Monday, down by just €0.20 per tonne from €549.58 per tonne on October 11.
The index was up by €11.30 per tonne week on week, but down by €16.87 per tonne month on month.
Offers of HRC in Northern Europe were heard at €560-590 per tonne ex-works. For larger tonnages, discounts of €10-15 per tonne were possible, market sources said.
But achievable values were estimated by most buyers at €540-550 per tonne ex-works.
The stabilization of domestic HRC prices was also supported by import offers being uncompetitive.
Asia-origin HRC was heard offered at €550-560 per tonne CFR Antwerp, while HRC from Turkey was offered at €580-590 per tonne CFR, including anti-dumping duty.
“Importing HRC is dead in customers’ minds,” a buyer source told Fastmarkets.
Apart from the comparatively high import prices, trade risks – such as an anti-dumping investigation and safeguards review – made such offers unattractive to European buyers, Fastmarkets understands.
In Southern Europe, meanwhile, Fastmarkets’ daily steel HRC index, domestic, exw Italy, was calculated at €545.00 per tonne on Monday, unchanged from Friday.
The Italian index was up by €5.00 per tonne week on week, but down by €25.00 per tonne month on month.
Sources reported an offer from one local supplier at €580 per tonne delivered (€570 per tonne ex-works), but buyers estimated the tradable price at no more than €540-550 per tonne ex-works.
Some deals for small volumes were reported at similar levels.
“Suppliers are pushing for higher prices,” a second buyer source told Fastmarkets, “but customers are strongly resisting.”
Published by: Darina Kahramanova