EU HRC: ArcelorMittal rise gets muted response

Despite a major European mill announcing its second €30/t increase in the space of just 20 days, Argus' daily northwest European HRC assessment slipped by €0.25/t to €508/t ($576/t) ex-works today.

Buyers said the steelmaker's offer is around €530-540/t ex-works in north Europe — ostensibly unchanged since its first €30/t increase announcement at the end of January, and reinforcing the fact that customers spurned its previous attempt to raise prices.

But rapidly increasing Turkish coil prices as well as a structural shift in the CIS slab market — as a result of limited availability — are prompting some European mills to seek higher levels for April and May. A north European re-roller has also moved up somewhat, and has had brisker inquiries from customers in the past week or two.

Increases by mills in Italy have gained more traction, where import slab and coil prices are having a quicker and more pronounced effect on sentiment — as is typical in the south, which reacts faster to import pricing. Turkish offers have risen as high as €520/t cif, which has seen domestic Italian levels firm up at €480.50/t ex-works — trading at a discount of €27.50/t to northwest Europe.

But European buyers are reluctant to take imported material, as it is in some cases more expensive or near parity to domestic, in addition to the longer lead times. Taiwanese HRC is still available at close to €490/t cif, but it will not arrive until the back end of the second quarter.

Given the strong rises in import offers, domestic European players have more of a captive HRC market for now.

Summary of market activity heard by Argus:

• HRC, EU: Tradable value at €510/t ex-works northwest Europe, according to large steelmaker
• HRC, EU: Tradable value at €510/t ex-works northwest Europe, according to steelmaker
• HRC, EU: Tradable value at €515/t ex-works northwest Europe, according to trader
• HRC, EU: Tradable value at €505/t ex-works northwest Europe, according to buyer
• HRC, EU: Tradable value at €512.50/t ex-works northwest Europe, according to buyer
• HRC, EU: Italian mill offering at €510/t ex-works, according to steelmaker
• HRC, EU: Turkish import offer at €525/t ex-works, according to trader
• HRC, EU: Northwest European mill offering at €520/t ex-works, according to buyer
• HRC, EU: Northwest European mill offering at €540/t ex-works, according to seller
• HRC, EU: Buyers would accept €490/t cif Italy/Antwerp, according to trader
• HRC, EU: Egypt offer at $550/t fob, according to trader