Europe's biggest steelmaker ArcelorMittal has increased steel coil offers again by Eur30/mt, after a temporary respite from the steady price rises occurring up until end-May, sources told S&P Global Platts June 24.
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The new offer prices at Eur1,200/mt delivered across Europe for hot-rolled coils and Eur1,350/mt delivered across Europe for cold-rolled and hot-dipped galvanized come at a time when the Northern European market has been strengthening while the Italian market is seeing some import pressure.
Sources confirmed they had received new asking prices by ArcelorMittal. However, the steelmaker had not officially confirmed the latest price rise at the time of writing.
With negative sentiment emanating from China during June, European coils saw a brief break from the price rally in spring and searched for direction. Sentiment among mills has turned more optimistic again since the proposal and support of the extension of European safeguard quotas on imports into the European Union by member states, while the market is still suffering from material shortages. The shortages have been reflected in historically low stock levels in Europe's biggest market Germany, which have seen a slight rebound as of late, albeit on low levels.
Platts reported a flurry of HRC deals earlier in the week between Eur1,170-1,200/mt in the Northern European market. Market participants have been wondering whether ArcelorMittal would make a move as other mills have already raised offers to Eur1,200/mt or above. However, sources indicated that market activity levels depend primarily on material availability rather than mills' forays for fresh prices.
The Italian market has seen competitive import offers with Indian offers targeting the market. Several market participants have been heard to have bought import material for July arrival, while material for October arrival is being offered currently.
European mills remain well booked with long order backlogs and material availability in Q4 for HRC. Lead times are longer for HDG and CRC, reaching into Q1 next year though CRC is seen as the product in tightest supply in Europe.
The daily Platts assessment for HRC EXW Ruhr stood at Eur1,178/mt June 23, seeing a year-to-date increase of Eur513/mt. The daily assessment for HRC EXW Italy was assessed at Eur1,130/mt June 23, a Eur472.50/mt increase since the beginning of the year.