taitai6769/Adobe Stock Insufficient local supply, coupled with anti-dumping measures against imports from some third countries in the EU, has led to a further increase in prices for hot rolled coils in Western Europe.
Western European mills are currently offering flat steel for May rolling and delivery in June at €850-900 ($1,015-$1,070) per tonne on a self-pickup basis, MetalMiner traders said. This is a third more than the 750 euros ($894) that manufacturers offered on average in early February. However, reduced production at Western European mills may make it difficult to obtain finished products at prevailing prices and prices. “You can’t buy a ton,” says the trader, referring to current purchases of hot-rolled steel from Western European mills. Higher commodity prices and allegedly difficult access to scrap metal have also driven prices up, another trader said. Hot rolled steel coils are used in construction. Flat steel is also used as a raw material for the production of welded pipes. It is also used for cold rolled coil rolling and subsequent production.
Anti-dumping measures of the European Union regarding hot-rolled steel from Turkey and China also supported prices in the domestic market of Western Europe. In addition, support was provided by strong demand for finished products in China, the sources say. “[China's economy] is doing very well,” the first trader said. Strong demand for HRC from construction and infrastructure projects in Southeast Asia is also supporting prices in Western Europe, the sources said. Imports come from India and Japan. According to a key trader, hot rolled coil was sold at US$890-900 CFR in Europe, with deliveries tentatively scheduled for May and June. Rising freight rates and difficulties securing ships are also supporting high import prices, the sources said. The current situation will continue to support the upward trend of HRC. Sources say this is true for both the domestic and import markets. “I don’t know how long this trend will last,” another trader said. The first trader confirmed that the price could continue to rise. However, he suggested that the market may be less willing to accept further price increases. “It looks like it will continue to grow, but everyone is complaining,” added the first source.
Post time: Apr-27-2023