HRC buyers from the EU are focused on local trade, interest in imports is sporadic due to risks
Business activity in the European HRC market is still mainly focused on the domestic segment, where trade volume remains at a moderate level.
In Italy, there was a slight decrease in prices for August products due to market talk that ArcelorMittal is seeking to raise its prices throughout Europe. "I don't see them[local factories]increasing production, so as soon as the supply is reduced, they will strive for the best they can get," a SteelOrbis source said. The EU's interest in imports remains low due to the risks associated with the uncertainty of CBAM quotas and duties. "It's been really quiet lately. Traders believe that it is very simple not to offer anything right now because there is no market, so there is no need to waste time and effort. It's just better to wait for new tariffs," another source said.
In the southern part of the EU, especially in Italy, prices for HRC in local factories are reported to be mainly 680-690 euros per ton and up to 700 euros per ton in manufacturing plants, with real prices for HRC being 670-680 euros per ton in manufacturing plants. However, some sources report mining bids in August at a price of 660-670 euros per ton, which are now considered speculative. In Spain, official prices are reported to be up to 720-730 euros per ton, but discounts are considered quite possible.
In the northern part of Europe, official factory prices were reported to be 690-704 euros per ton from the factory, while real prices are still estimated at 680-700 euros per ton from the factory, which corresponds to last week's level.
Some sources report that ArcelorMittal has begun to announce its intention to raise prices by 20 euros per ton in July and by 50 euros per ton in August. "The question is rather about the price level they have in mind; an increase in itself is a common problem. Everyone would like to raise, as we have been lowering[prices]for a month now," said a SteelOrbis source. "Once the old stocks run out, the replacement cost will increase significantly. And since there are very few import proposals, EU plants should include prices to be reviewed in August at the latest," another source said.
Recently, activity in the import sector has been quite low, as not many are willing to take risks associated with unclear quotas. The latest HRC offers from Algeria amounted to 720-730 euros per ton per day, which is 10 euros lower than last week, while Turkey maintained the level of 690 euros per ton per day. Most DDP HRC offers from Asia remained at a high level with sideways fluctuations – 730 euros per ton from South Korea, 720 euros per ton from Taiwan and 750 euros per ton from Taiwan. The Vietnamese mill's readings remained the lowest at €690/t