Mar 27, 2023
Domestic HRC prices stable in Europe, buyers show interest in imports
2023-04-12
Domestic prices for hot-rolled coil in Europe were fairly stable on March 24 as buyers have started to show higher interest in imported coil.
Limited domestic supply creased by a combination of effects from furnaces stoppages, technical issues at some of the mills and steady demand supported the domestic prices. The majority of the European mills have already been offering June-July rolling coil.
“The volumes available in the market remain slightly lower than the demand,” a Northwest European service-center source said. “If the mills remain disciplined in their production planning, they will protect the prices.”
Some market sources believe that the European mills will try to push prices up to Eur900/mt ex-works Ruhr.
Platts assessed domestic hot-rolled prices in Northwest Europe at Eur850/mt ex-works Ruhr on March 24, down by Eur5/mt on week.
The assessment reflected tradable values heard at Eur840-850/mt ex-works Ruhr and offers reported at Eur830-870/mt ex-works Ruhr.
The long lead times from European mills combined with high domestic prices made buyers, particularly in Italy, more interested in the imported coil. Turkish mills remained inactive in the European market following the earthquake, but North African suppliers have been able to offer shorter lead times – similar to those from European mills. While Asian mills have been offering August rolling coil.
Offers of HRC from North Africa have been reported at Eur760-780/mt CIF Antwerp and from Asia at Eur780-800/mt CIF Antwerp.
In South Europe, offers of HRC from Asia have been reported at Eur750-770/mt CIF Italy. And market sources said that the big buyers like diemakers would be able to get additional discounts.
Platts assessed domestic prices for hot-rolled coil in South Europe at Eur830/mt ex-works Italy on March 24, unchanged on day.
Market sources estimated tradable values at Eur820-830/mt ex-works Italy and reported offers at the equivalent of Eur840-850/mt ex-works Italy.
Platts is part of S&P Global Commodity Insights.
— Maria Tanatar
Source: Eurometal
