Friday 15 January, 2021
The domestic price for hot-rolled coil rose day on day in Northern Europe on Friday January 15, with mills likely to push for even higher prices, sources told Fastmarkets.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at âŹ716.00 ($869.92) per tonne on Friday January 15, up by âŹ10.88 per tonne from âŹ705.12 on Thursday.
The index was also up by âŹ48.50 per tonne week on week and by âŹ79.75 per tonne month on month.
The calculation of todayâs index was based on achievable prices heard at âŹ700-730 per tonne ex-works, offers heard at âŹ730 per tonne ex-works and a deal reported at âŹ720 per tonne ex-works.
In Southern Europe, Italian buyers made a few deals at âŹ700 per tonne exworks with local mills, but producers are likely to increase their official offers next week, sources said.
In Northern Europe, buyers also anticipate further increases in offer prices because transaction prices have been approaching ArcelorMittal’s official o.er level of âŹ730 per tonne ex-works.
The price rises are being driven by combination of low availability of HRC in the market, which reflects good order books at European mills, and the lack of competitive import offers.
Northern European mills have been offering HRC for May-June shipment, with one mill already claiming to be sold out of second-quarter production, sources told Fastmarkets.
In Southern Europe, meanwhile, Italian producers have been offering second quarter rolling production. Volumes, however, are limited due to lower output at the mills, a focus on sales of non-commodity-grade products by one producer and the total absence of another.
Import offers have been limited an offers have been uncompetitive compared with domestic prices. In addition, lead times for overseas coil have been similar or only slightly longer than those of domestic EU suppliers.
Some deals for Indian HRC were done earlier this week at âŹ690-695 per tonne cfr with an Italian buyer, but the price has since increased, according to sources. Offers for HRC from Japan have been heard at âŹ705 per tonne cfr in Southern Europe.
And Turkish mills have been offering the material at âŹ720-730 per tonne cfr, including the EU’s preliminary anti-dumping duties.
Buyers have been reluctant to buy big volumes of HRC because they expect prices to fall in the second quarter when domestic production increases.
Fastmarkets, 15.01.2021
