Hot rolled coil prices in the Northern European region increased by €4.55/t in the first week of March, according to Eurometal. Compared to the same period in February, the increase was €32.2/t. Official offers from producers in Germany and Benelux amounted to €640–660/t EXW. Real sales prices were at €631/t, according to Fastmarkets estimates.
In the Southern European region, the weekly increase was more noticeable, at €7.5/t, but weaker in monthly comparison, at €27.5/t. Producer offers at the end of the first week of March were at €620/t EXW Italy. According to trade sources, the deals were concluded in the range of 610–620 EXW. At the same time, Italian plants predict a rise in the price of their products to €640–660/t in April-May.
The cost of HRC in Vietnam also grew. A large producer Formosa Ha Tinh raised the price by $15/t in early March, to $517/t CFR Vietnam, according to Kallanish. Importers followed the example of local companies. Indonesian Dexin Steel increased its offer by $2.5/t. Consumers accepted the bullish play. Thus, a large producer Hoa Phat Dung Quat reported the sale of all April volumes of rolled products.
The most rapid rise in the price of hot-rolled coil was in the USA. In the first week of March, the offer increased by $100-150/t, to $950-1000/t EXW. A year ago at the same time, the products were sold at $750–800/t. A source at one of the enterprises reported that there are no problems with sales. «We are closing April orders and moving on to May,» – he said.
The spot price of hot-rolled coil in China fell by $7/t, to $463-466/t on the Shanghai Stock Exchange. Futures contracts for May lost $8.5/t, falling to $463/t. This figure was the lowest this year. In early March, China was the only key market where hot-rolled steel became cheaper.
The pessimism of participants is explained by the statement of the National Reform Commission on plans to reduce steelmaking capacity by 50 million tons this year. In other regions, the rise in price was caused not by growing demand, but by administrative regulation measures – both already adopted and expected.
In Vietnam, preliminary anti-dumping duties on Chinese rolled products in the amount of 19.38-27.83% for different manufacturers came into effect on March 7. Local traders expect these measures to be extended to 2000 mm wide sheets (currently duties apply to products up to 1880 mm).
The US began to impose a 25% duty on all metal imports on March 4, in accordance with the presidential decree of D. Trump. It is expected that the European Union will soon take similar measures against steel imports, not only from the US. The absence of cheaper foreign offers allows local manufacturers to increase margins without taking into account the dynamics of demand.
As reported, the American Nucor raised the price of hot-rolled coil on March 10. This is the seventh increase since the beginning of the year. During this period, the company’s products have risen in price by $155/t.
Courtesy: https://gmk.center/
