European HRC prices are rising, but weak demand and virtually zero imports are holding back activity.
Over the past week, prices for hot rolled coils in Europe (HRC) have risen again as factories continue to increase supply volumes across the region. However, the market reaction remains subdued, as demand remains weak and many buyers refrain from making firm commitments. It is reported that the majority of buyers bid below the level of 700 euros per ton from the factory, which highlights the gap between the higher target prices of manufacturers and the consumer appetite of the market. Meanwhile, market activity in the import segment remains very low, and only a few offers have been received this week.
.While offers from leading European manufacturer HRC ArcelorMittal were maintained at 750 euros per tonne for delivery or 730 euros per tonne from the factory, most local prices for HRC from plants in Northern Europe, mainly for delivery in May, were estimated at 700-710 euros per tonne from the factory versus 730 euros per tonne from the factory.685-705/mt went on sale last week. At the same time, according to sources, although trading activity has improved to some extent, customers insist on prices below 700 euros per ton. Thus, the prices available for trading were set at 685-700 euros per ton from the factory, compared with 670-700 euros per ton from the factory last week.
.In Italy, factory offers are estimated at 685 euros per tonne for April delivery, up 5 euros from the previous week, and about 700 euros per tonne for May delivery, the same as last week. Meanwhile, the traded price level is estimated at 680-690 euros per ton from the factory, which is 10 euros higher than last week.
.Meanwhile, volatility in the energy markets has significantly reduced trading activity, and market participants point to sharp and unpredictable price fluctuations that make many buyers reluctant to enter into new deals. Traders note that the war in the Middle East has increased uncertainty in global markets, leading to a shift in trade policy towards speculation rather than demand-driven transactions. The conflict has also had a significant impact on Europe's energy sector. Gas prices increased significantly in early March, and since steel production and related processes such as hot rolling are very energy intensive, higher gas prices are expected to increase the operating costs of European plants.
The import market continues to show low activity, as industry sources reported only a limited number of new offers. The estimated offer prices for HRC remained at the level of 525-600 euros per ton CFR, with the lower limit of the range corresponding to the HRC offers coming from India. Have been voiced