European buyers still reluctant to accept higher HRC offers
In general, offers from other integrated mills in the region were heard in the range of €620-630 ($642-652) per tonne ex-works or delivered. Most producers heard to be offering April lead times already, however, several buyer sources said that some producers still could do March deliveries.
Market participants pointed out that domestic HRC prices have recovered from the lower levels observed in the fourth quarter of 2024, but mills target offers were “unrealistic” considering subdued demand.
Most sources estimated the tradable market level to be at €570-590 per tonne ex-works on Tuesday.
“Demand is still not strong enough to back up €600 + [HRC] prices. The mills have to reduce output to make [a price increase] work,” a buyer source told Fastmarkets.
Market sources told Fastmarkets that the price rise mills were pushing for was not demand-driven, adding that mills were hoping that the EU’s trade policies will support domestic markets.
“We have safeguards in review right now, we have [an] anti-dumping probe, we have Trump in the US [presidential] office and [we are] bracing for even more protectionism globally. Importing steel gets increasingly inconvenient – you don’t know what the cost will be,” a second buyer said.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €577.50 per tonne on Tuesday, up by €2.50 per tonne from €575.00 per tonne on Monday.
The index was up by €4.17 per tonne week on week and by €12.50 per tonne month on month.
At the same time, Fastmarkets calculated its corresponding daily steel hot-rolled coil index domestic, exw Italy at €573.75 per tonne on Tuesday, up by €3.75 per tonne from €570.00 per tonne on Monday.
The index was up by €3.75 per tonne week on week and by €13.75 per tonne month on month.
Offers in Italy were heard at €610-620 per tonne delivered, which nets back to around €600-610 per tonne ex-works.
But these offers have not been accepted by buyers so far.
Market participants estimated the tradable market levels for HRC in Italy in the range of €570-580 per tonne ex-works.
Import offers of HRC to both Northern Europe and Italy remained limited on Tuesday. According to sources, this was due to the pending safeguard measures review.
From Turkey, one supplier was heard offering €580-590 per tonne CFR. But for tonnages of 10,000 tonnes and higher, it was possible to get €560-570 per tonne CFR, several sources said.
From Asia, offers were heard at €560-570 per tonne CFR for HRC arriving in April.
