European hot-rolled coil (HRC) prices are being supported by limited imports and higher energy and transportation costs, rather than demand, market participants told Fastmarkets on Tuesday, November 10.
In Italy, buyers were booking deals at €750 per tonne ex-works (about $839), while sellers’ unofficial price indications stood at €780 per tonne.
“I think the gap will narrow by Christmas: imports are too limited,” a buyer’s representative said.
A seller’s representative said offers were in the range of €750–765 per tonne ex-works, while prices at which deals could be concluded were between €740 and €760.
The Fastmarkets domestic Italy hot-rolled coil index, ex-works, stood at €750.31 per tonne on Tuesday. This was €4.48 higher than Monday, November 9 (€745.83). The index gained €4.31 per tonne over the week and €7.81 over the month.
In Northern Europe, one re-roller was selling coil at €780 per tonne delivered, equivalent to €760–765 ex-works. According to Fastmarkets, it was also negotiating sales at €790 delivered, or €770–775 ex-works. Other steelmakers were offering coil at €770–780 delivered and €750–765 ex-works.
A German buyer confirmed purchasing several batches at €760 per tonne. According to the buyer, mills were targeting €775–795 ex-works in new negotiations, citing limited imports and higher energy and transportation costs. The overall offer range was €770–800 per tonne delivered and €750–785 ex-works.
The largest market participant was reportedly offering HRC at €820 per tonne delivered or ex-works. This price was excluded from the index calculation because it was too high.
The Fastmarkets domestic Northern Europe index, ex-works, stood at €762.50 per tonne on November 10, down €1.50 from the previous day. It rose €4.31 per tonne over the week and €7.81 over the month.
The Fastmarkets report was written by Vlada Novokreshchenova.