 |
| HRC |
Market Trends and Price Developments
European hot-rolled coil (HRC) producers have pushed for higher prices for the second quarter, though buyers have only partially accepted these increases. The price recovery is driven by restocking, particularly in Northern Europe, and a decline in imports due to trade restrictions, according to Fastmarkets.
European buyers remain cautious about booking imported HRC due to pending safeguard measures and potential trade risks. As a result, domestic producers are taking advantage of limited competition.
HRC Prices in Northern and Southern Europe
German mills were offering April-delivery HRC at €630-660 ($660-692) per tonne ex-works, with minimal room for discounts. A major Benelux mill set its offers at €630-640 per tonne ex-works, while buyers in Northern Europe estimated tradable values at €600-620 per tonne ex-works.
Fastmarkets calculated the daily steel HRC index (domestic, ex-works Northern Europe) at €606 per tonne on Tuesday, increasing by €1 from Monday and showing a week-on-week rise of €4.60 per tonne and a monthly rise of €32.25 per tonne.
In Southern Europe, Fastmarkets’ daily HRC index (domestic, ex-works Italy) was €597.50 per tonne on Tuesday, up €2.50 from Monday, reflecting a €3.75 per tonne increase week on week and a €27.50 per tonne rise month on month.
Challenges in the Italian Market
Italian mills were also targeting higher prices. One mill aimed for €640 per tonne delivered (€630 per tonne ex-works) for April-delivery coils, while another targeted €620 per tonne delivered (€610 per tonne ex-works). However, Italian buyers found these offers unworkable.
“The level of stock at buyers’ disposal allows them to wait. New offers are too high, and the downstream market remains weak, making purchasing HRC above €600 per tonne ex-works unfeasible,” a steel service center in Italy said. Buyers' estimations of tradable values remained at €590-600 per tonne ex-works, with minimal transactions reported.
Impact of Trade Measures on Imports
The overseas coil market remains subdued due to safeguard measures and an ongoing anti-dumping probe. Turkish April-shipment HRC was offered at €590-600 per tonne CFR, including anti-dumping duties, while Indian coil was priced at €560 per tonne CFR to Southern Europe.
