EU HRC: NW prices edge up, trade quiet

Northwest European coil prices continue to edge up with mills still holding firm for increases despite revising their expectations somewhat.

Argus' daily northwest Europe index edged up by €2/t today to €474.25/t ex-works. The daily Italian index was static at €441.75/t ex-works.

Some offers have slipped a touch and are around €480/t ex-works. Liquidity is thin as buyers are trying to hold off in anticipation of prices softening in the next few weeks, should import quotations slip and domestic mills need to fill their rolling programmes. Most buyers restocked over January and are not desperate for material, but those that are will have to pay higher prices.

At the same time, mills are sufficiently comfortable with their lead times, so are not in a rush to sell. Import prices to Antwerp are €460-465/t cfr from some, with buyers hoping that they can achieve €450/t cfr.

The coronavirus is still a potential brake on the increases being sought by mills, as it is causing uncertainty and excessive volatility in raw material costs. Asian traders have also repositioned their books to short, and are offering hot and cold-rolled coil at lower levels without the material in hand. There was even talk of deals done at $450/t fob China, with some very low offers heard to southeast Asia.