EU HRC: Italy maintains upward track

Italian hot-rolled coil (HRC) prices increased further today, with the Argus index up by €1/t to €444.75/t ex-works. The northwest EU index was stable at €481.25/t ex-works.

Steel service centres in the country have started purchasing this week, albeit not very large volumes. But movement has been observed in the market after nearly three weeks of inactivity. Sheet prices in Italy are still slow to move up on intense competition between the service centres.

Many expect to see more regular transactions for smaller lots with short lead times over the coming weeks, as there are still questions about the sustainability of the price recovery in Europe. Concerns over the impact of the coronavirus on the global market appears to be easing, as Chinese prices have quickly rebounded in the second half of this week. This is giving buyers on the continent more confidence that steel prices will not collapse.

Raw materials prices have rebounded too, with Italian scrap prices this month decreasing by less than previously expected. Delivered to mill prices for E3 old scrap and E40 shredded scrap were down to €230-240/t and €235-245/t, from €250-260/t and €255-265/t, respectively, according to Argus assessment on 13 February.

But some sellers in Italy were heard targeting €460/t ex-works amid firmer import prices, with few offers around from limited-origins and mostly from Turkey. Some were focusing on higher-value added product sales. There is speculation in the market that a large producer is planning a continent-wide price increase.

In northern Europe, cold-rolled coils were on offer into Antwerp at €528-530/t cfr from the east Asia, while a bid was heard at €525/t cfr in Italy. Italian cold-rolled prices are at around €530-540/t ex-works this week.