European hot-rolled coil (HRC) prices edged upward on February 14, supported by improved buying activity and a lack of new imports amid pending trade measures. Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €603.75 per tonne, up by €0.42 per tonne from the previous day. The Northern European index increased by €4.58 per tonne week on week and by €30.42 per tonne month on month.
In Northern Europe, market sources noted improved buying activity in the first half of February compared to very low levels observed throughout January. A mill source mentioned that it was no longer possible to book HRC below €600 per tonne ex-works. The major driver for HRC's price recovery is the import situation, although real demand remains subdued.
A review of existing steel safeguard measures was launched by the European Commission on December 17 and is expected to be concluded by the end of March, with any changes taking effect on April 1. Offers from German mills for April-delivery coil were reported at €620-630 per tonne delivered. Italy-origin coil with April lead times was offered to Germany at €650 per tonne delivered. One supplier in the Benelux area was aiming for €620-640 per tonne ex-works, and a re-roller was aiming for €610 per tonne ex-works.
In Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €595.42 per tonne, up by €1.85 per tonne from the previous day. The index increased by €2.92 per tonne week on week and by €25.42 per tonne month on month. Italian buyers remained cautious about making bookings, so traded volumes in the spot market were low. Local suppliers were heard offering April-delivery HRC at €600-630 per tonne delivered. A major European supplier was offering HRC with second-quarter lead times to Italy at €650-660 per tonne delivered. Buyers’ estimates of tradable prices stood at €590-600 per tonne ex-works.
The market for imported HRC remained quiet, with few offers available. Most overseas suppliers were offering end-March-April shipment. Indonesia was heard offering HRC to the Italian market at €540-560 per tonne CFR. Material from South Korea and Japan was on offer to Italy at €580 per tonne CFR.
