European hot-rolled coil (HRC) producers are pushing for higher prices for the second quarter, with increases only partially accepted by buyers. The upward sentiment in the European HRC market is partially supported by restocking, especially in Northern Europe. However, the lack of new imports due to trade measures remains the major driver for a price rebound.
European buyers are cautious about booking HRC from imports due to pending safeguard measures and potential trade risks. German mills are aiming for €630-660 per tonne ex-works for April-delivery HRC, with minimal room for discounts. A major mill in the Benelux area is offering HRC at €630-640 per tonne ex-works. Buyers in Northern Europe estimate tradable values at €600-620 per tonne ex-works.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €606 per tonne, up by €1 per tonne from the previous day. The Northern European index increased by €4.60 per tonne week on week and by €32.25 per tonne month on month. In Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €597.50 per tonne, up by €2.50 per tonne from the previous day. The index increased by €3.75 per tonne week on week and by €27.50 per tonne month on month.
In Italy, local producers are also aiming for higher prices. One mill is targeting €640 per tonne delivered (€630 per tonne ex-works) for April-delivery coil, while another targets €620 per tonne delivered (€610 per tonne ex-works). This is an increase from €610-620 per tonne delivered and €590-600 per tonne delivered for March lead times. A European supplier is offering HRC with second-quarter lead times at €660 per tonne delivered to Italy. However, none of the mentioned offers are considered workable by Italian buyers.
The level of stock at buyers’ disposal allows them to wait, as new offers are too high and the downstream market remains weak. Buyers’ estimations of tradable values are still reported at €590-600 per tonne ex-works, but since mills are standing firm on new offers, no transactions were reported. The market for overseas coil is also quiet, with safeguards review and anti-dumping probes into certain origins limiting buying appetite for imports.
