Domestic hot-rolled coil prices in Europe were largely unchanged on Tuesday October 20, but buyers expect producers to increase their official offers soon, sources told Fastmarkets.
The offer prices will rise, they added, based on the combination of reduced availability and solid demand.
*** hot-rolled coil in Europe , north
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €۴۹۶٫۵۰ ($۵۸۳٫۴۲) per tonne on Tuesday October 20, down by just €۰٫۱۷ per tonne from €۴۹۶٫۶۷ per tonne on October 19.
The index was up by €۲٫۷۵ per tonne week on week and by €۱۱٫۵۵ per tonne month on month.
Tuesday’s index was based on achievable prices and offers heard at €۴۸۵-۵۰۰ per tonne ex-works.
Some of the region’s steelmakers have been offering HRC at €۵۲۰-۵۴۰ per tonne, but this was not included in the index because no deals have been confirmed at that price.
Market participants said that an increase in official offer prices for first-quarter-rolling hot-rolled coil in Europe from Northern European steelmakers was imminent.
Mills in the region have already sold out of December-rolling material and have started to trade January-February production coil, they added.
*** hot-rolled coil in Europe , south
In Southern Europe, official domestic offers for hot-rolled coil in Europe have been heard at €۴۸۰-۵۰۰ per tonne ex-works, with buyers putting the “workable” price at €۴۸۰-۴۸۵ per tonne ex-works.
Integrated mills in the region were reported to be sold out their fourth-quarter-rolling HRC, while Italian re-rollers still have small volumes available for December production, market sources said.
Southern European producers are also expected to increase their official prices soon, with some sources claiming that Spanish producers have already started to offer HRC at €۵۲۰ per tonne ex-works.
Bullish sentiment in the market was supported by good order books at the producers, solid demand in the market and low buyer interest in imported HRC.
*** hot-rolled coil in Europe , capacities
Growing domestic production capacities since the restart in Northern Europe in August-September have not resulted in a significant increase in the availability of coil products, because it takes time to fully resume blast furnace operations. In addition, any extra volumes are being redirected to long-term contract buyers with solid demand, such as automotive manufacturers. As a result, the availability of HRC in the spot market remains low.
Tougher safeguard measures settled in the middle of 2020, along with the anti-dumping case into HRC imported from Turkey, mean that buyers have virtually no alternatives to domestic supplies, sources said.
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