HRC steel: new upward cue for European market prices

In the week to Friday, March 31, the European hot rolled coil HRC steel market was characterized by sluggish demand and minimal activity, but on April 3, 2023, HRC Hot Rolled Coil – Northern Europe prices triggered an upward cue of +3.69 percent, returning to the 845.50 euros/mt area.

With demand low, market participants remained cautious about whether these price increases were justified or realistic.

Earlier in the week, offers from integrated producers in northern Europe were reported at 850-880 euros per ton. Toward the end of the week, steel mills informally offered 900 euros per ton before official announcements were made.

Hot Rolled Coils HRC – North Europe euro/ton

Limited supply has continued to push prices upward. According to buyers, the current weakness in demand is likely to create significant resistance to any further upward trend.

In the Italy area,volumes traded in the market were minimal due to persistently slow demand. During the week, domestic producers’ offers hovered around 850-860 euros per ton ex-works for June delivery.

Meanwhile, buyers’ estimates of achievable prices approached 820-840 euros per ton ex-works. According to some market sources, producers in the country have been able to offer coils with June-July delivery.

The long lead times of domestic steel mills have increased the appetite for competitive import prices. On March 27, a South Korean steel mill offered HRC to Italy at 770 euros per ton CFR for June shipment.

A day later, a Japanese steel mill offered HRC to Italy at 770-775 euros per ton CFR for June shipment. On the same day, two trading sources in the region reported an offer from South Korea at 770 euros per ton CFR for May-June shipment.

International HRC – CRC Steel Coils euro/ton

In the middle of last week, HRC offers were heard from a Japanese plant to Italy at 770-775 euros per ton CFR for June shipment. According to sources, an Indian plant was aiming for 750 euros per ton CFR, also for the June shipment.

HRC offers from South Korea and Vietnam were heard at 770 euros per ton CFR, for shipment to Italy in May-June. On March 31, coils of Japanese origin was offered at $830 to $840 per ton CFR for June shipment, with agreements for some limited lots reported earlier in the week.

On the same day, some sources reported offers from Turkey at 800 per ton CFR for June shipment.