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| HRC |
The prices for European steel hot-rolled coil (HRC) continued to increase on Wednesday, March 26, due to active restocking and limited supply from both domestic producers and imports, according to industry sources.
Price Trends and Market Activity
Fastmarkets calculated its daily steel HRC index for Northern Europe (domestic, ex-works) at €645 ($695) per tonne on Wednesday, reflecting an increase of €1.67 per tonne from €643.33 per tonne on Tuesday. The index was up by €7.50 per tonne week on week and by €18.75 per tonne month on month.
A leading European integrated mill continued to offer June-delivery HRC at €680 per tonne ex-works or delivered, depending on the destination. Other offers ranged between €640-660 per tonne ex-works for May/June delivery. Transactions were reported at €640-650 per tonne ex-works, with buyers estimating the tradeable market price at similar levels.
"Mills in Northern Europe are well-booked for May, with only small volumes available for June," a producer source told Fastmarkets. The source also noted that supply limitations, stemming from operational issues at some domestic mills and decreased interest in imported HRC due to trade risks, have contributed to price support.
Active restocking has also played a role in the price increase, with expectations for further rises in the next quarter. However, some market participants remain cautious.
"I do not see a significant price increase as being possible because the European economy is still not performing well," a distributor in Germany stated.
Southern European Market Overview
Fastmarkets' daily steel HRC index for Italy (domestic, ex-works) was calculated at €624 per tonne on Wednesday, showing a marginal decrease of €0.17 per tonne from €624.17 per tonne on Tuesday. The index was up by €1.50 per tonne week on week and by €13.79 per tonne month on month.
Italian suppliers offered HRC at €620-640 per tonne ex-works, while buyers estimated the workable market price at €610-620 per tonne ex-works.
Import Market Remains Quiet
The European market for imported HRC remained subdued. Indonesian suppliers offered HRC at €640-650 per tonne CFR Italy and slightly higher prices to Northern Europe, with reported offers at €580 per tonne CFR Antwerp.
Turkish suppliers continued to offer HRC at €590-600 per tonne CFR, while Indian HRC offers to Italy ranged from €565-575 per tonne CFR. Despite these competitive prices, buyers remained hesitant to book imported HRC due to trade risks and long delivery times.
Outlook
With Northern European mills booked for May and limited availability for June, domestic supply constraints and restocking trends are expected to keep prices firm. While some market participants foresee further price increases, concerns over the sluggish European economy and buyer reluctance to engage with imports may limit significant upward movement.
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