EUROPE HRC: Domestic prices stable, supported by continuing strong demand

Monday 17 May

Domestic prices for hot-rolled coil in Europe were largely unchanged on Monday May 17, supported by material shortages and strong demand, sources told Fastmarkets.

Market sources said the number of transactions over the past week had been minimal, however, because mills have only limited volumes of coil with long lead times and the buyers have been cautious about doing deals – concerned

that if they book material now they will end up with stocks of coil booked at high prices when the prices eventually drop.

European steelmakers have been offering third-quarter shipment coil, with some producers claiming to have sold out of downstream coil for 2021, sources said.

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €1,086.00 ($1,318.88) per tonne on Monday May 17, down by €2.75 per tonne from €1,088.75 per tonne on May 14.

The index was, however, up by €42.25 per tonne week on week and by €159.75 per tonne month on month.

Monday’s index was based on market participant estimates of achievable prices at €1,050-1,100 per tonne ex-works and offers at €1,100 per tonne ex works.

Fastmarkets calculated its corresponding daily steel hot-rolled coil index, domestic, exw Italy, at €1,067.50 per tonne on Monday, down by just €0.50 per tonne day on day from €1,068.00 per tonne.

The Italian index was, however, up by €40.83 per tonne week on week and up by €155.83 per tonne month on month.

Market sources estimated achievable prices at €1,030-1,040 per tonne ex works and reported offers at €1,100 per tonne ex-works.

Apart from the short supply from domestic mills, European buyers have also faced high prices for overseas material. In addition, safeguard measures currently in place, along with uncertainty over whether they will still be in place after June 30 this year, have restricted access to imported HRC.

Demand from distributors and end users has been strong, with distributors also said to have low stocks.


Source: Fastmarkets; 17.05.2021