Northern European mills increase HRC offers on higher costs, recovering demand
Northern European steelmakers have increased their official hot rolled coil (HRC) offers on higher raw material costs and a recovery in the global flat steel market, sources told Metal Bulletin.
Metal Bulletin’s 62% Fe Iron Ore Index was at $70.24 per tonne cfr Qingdao on June 19, up by 9.66% week-on-week.
In addition, the European Commission (EC) is expected to definitively announce a minimum import price for HRC from Russia, Ukraine, Brazil and Iran in its anti-dumping case by October 6, with Serbia to be excluded from the ruling.
The decision is expected to support domestic price rises in Europe.
“If there are no changes made to the preliminary document we have seen, then it is potentially the best solution for Europe, as it would not shut the door for all HRC imports. But with minimum import prices, it should stop the flood of cheap material,” a trader said.
Meanwhile, demand was reported to have weakened due to seasonal factors. As a result, it will take time for buyers to accept price rises, according to market sources.
Metal Bulletin’s weekly price assessment for domestic HRC in Northern Europe increased to €500-520 ($576-599) per tonne ex-works on Wednesday July 19, up from €485-510 ($559-588) per tonne ex-works a week earlier.
Tata Steel in the Netherlands and well as Salzgitter and ThyssenKrupp in Germany have been offering the material at the upper end of the assessment range, according to market sources.
“It is still not entirely clear what offers ArcelorMittal is giving,” a second trader said.
The weekly price assessment for domestic cold rolled coil (CRC) in Northern Europe widened to €580-620 ($669-715) per tonne ex-works this week, from €580-615 ($669-709) per tonne ex-works a week earlier.
Metal Bulletin’s weekly price assessment for domestic hot dipped galvanized coil (HDG) was €630-660 ($726-761) per tonne ex-works on July 12, unchanged over the week.