HRC steel: European producers keep bids high despite reduced activity

Hot-rolled coil HRC prices remained broadly stable in Europe on Monday, March 20, with producers staying positive thanks to strong order books. Trading volumes were limited in the region, with bookings mainly for small lots.

Buyers remained cautious about recent price increases given the lack of demand support.

In addition, most of the idle steel capacity in 2022 has been or will be restarted early in the second quarter, which is likely to ease volume pressure. According to sources, however, the effects of these capacity restarts will not be felt until the third quarter of 2023.

Northwest European HRC Hot Rolled Coils steel prices stood at 825 euros/mt on March 21, stable from the previous day (+0.08%). On a weekly basis (since March 14), there is a slight increase of 0.36%.

Hot Rolled Coils HRC – North Europe euro/ton

Market sources stressed that buyers “do not have the power to ask for discounts” because manufacturers have a strong order book and are already offering HRC with June delivery.

HRC producers in Italy have run out of coils for May delivery and are in no hurry to offer material for June delivery. Final demand is very slow, but mills have a solid portfolio, so HRC prices will most likely continue to rise in the short term.

Prices for imported HRC have largely been impractical for European buyers, given the long lead times. In particular, offers from Japan and South Korea for May-June shipments were reported at 780-800 euros per ton CFR.

One Indian producer was targeting 680 euros/ton FOB to southern Europe.

Steel Flat Products India zone euro/ton