The European HRC market in a challenging period

The current market situation is centred on low trading volumes as producers are planning long production shutdowns in the approaching holiday period. Although producers, especially in Italy, are trying to raise prices to EUR 600-610/ton for December deliveries, current contract prices are hovering around EUR 560-570/ton.

1 January onwards, Europe is reported to be clearing imports from Asia through customs, while decreasing purchases from Asia due to EU import restrictions are putting pressure on HRC tonnage at ports. Production shutdowns started to become more widespread as buyers resorted to shutdowns or layoffs.

ArcelorMittal announced that it is increasing its prices by EUR 20/tonne in the new year and delivery times are extended until February-March. The new HRC price for February is set at EUR 630/ton, while hot-dip galvanised coil prices increased to EUR 750/ton.

However, EU re-rolling mills decided to increase current prices by EUR 50/tonne due to the increase in HRC prices. This increase stated to ensure the sustainability of costs.