Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe, at €493.50 ($583.43) per tonne on October 9, up by €2.47 per tonne week on week and by €17.25 per tonne month on month.
Friday’s index was based on achievable prices and offers heard at €490-505 per tonne ex-works and deals reported at €470-500 per tonne ex-works.
The region’s steelmakers pushed their official offers for HRC up to €520-530 per tonne, but this range was not included in the index because no deals have been confirmed at that price.
Domestic prices were supported by good order books at Northern European steelmakers, which have been offering material for delivery in January-February 2021.
Fastmarkets’ corresponding weekly price assessment for steel HRC, domestic, exw Southern Europe, was €480-490 per tonne on October 7, up by €5 per tonne week on week from €475-485 per tonne.
The assessment reflected the few deals and offers heard in the market. Italian steelmakers have been offering coil for December 2020-January 2021 shipment.
Buyers across Europe have been largely cautious of making new deals, instead preferring to wait to see the global HRC price trend after Chinese producers returned to the market from their week-long National Day holiday (October 1-8), market sources said.
Import offers have been limited and the majority of buyers have claimed that those present in the market have been uncompetitive. But the situation might change because prices for overseas material have started to decline.
Yet some sources believed that the combination of stricter European safeguard measures set this summer and an anti-dumping case into Turkish HRC would minimize the effects of import price falls on the domestic market.
Offers for Russia-origin HRC were heard at €470 per tonne fca Antwerp at the end of last week, compared with €481-486 per tonne fca Antwerp the week before.
Fastmarkets’ weekly price assessment for steel HRC, import, cfr main port Northern Europe, was €480-490 per tonne on October 7, compared with €480-485 per tonne a week earlier. This was based on achievable prices and offers heard in the market.
The corresponding price assessment for steel HRC, import, cfr main port Southern Europe, was €475-490 per tonne on Wednesday, compared with €470-490 per tonne a week earlier.
The assessment reflected offers of material from Turkey, Egypt and India.
Tight availability of domestic material has been one of the key drivers of the price rise in Europe, the result of both production cuts during lockdown and a demand recovery.
Last week, ArcelorMittal announced a decision to permanently close its Krakow steelworks’ hot area due to the dramatic effects of the Covid-19 pandemic on the European steel market.
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