Following the slowdown in the market due to the New Year holidays, price hikes are expected in the upcoming weeks, but no substantial changes were announced for HRC prices in the first week of January. SteelRadar reported that HRC prices across Europe were between €680-700 per tonne, although spot prices could rise above €700 per tonne if demand remains low. The index was down by just €0.42 from its level in the week to January 3, down by €0.50 on the week and up by €18.33 on a monthly basis.
European hot rolled coil (HRC) prices increased today after ArcelorMittal, Europe's biggest producer, raised its offers and announced that other producers are set to follow the same path. Market participants commented that recent deals in Italy were concluded at €700/t basis delivery from various EU sellers, but at least €10-20/t higher offers are possible in today's market.
Benelux
SteelRadar recorded a drop in local prices despite higher Benelux scrap export prices. Prices for HMS 1&2 (75:25) and HMS 1&2 (80:20) were set at $381/t FOB Rotterdam and $386/t FOB Rotterdam, an increase of $12/t weekly and $3/t daily, according to reports. HMS 1&2 (80:20) scrap prices exported from Benelux increased by $12/t CFR since last Friday to $415/t CFR Türkiye. Furthermore, trading is expected to improve after next week due to the demand for supplies for February shipments.
Germany
Trading in the German rebar market is slowly recovering after the holiday break. German rebar producers came back to the market with the same prices as before the Christmas holidays. Market participants are convinced that producers will reach the desired levels despite the stagnant demand. Participants believe that if scrap prices gain strength, prices will increase as production costs will be higher. This week, SteelRadar's assessed 12-32 rebar price settled at USD 635.
Italy
Wire rod producers in Italy are slowly restarting sales after the Christmas holidays, but some are still considering the right price level to offset costs. The demand is low and prices are almost stable. Although buying activity is relatively slow, producers are trying to keep price levels high. Processable prices for ASTM A510 (SAE1008) wire rod are currently at USD 650.
SteelRadar assessed the HRC steel index for Italy at €685 per tonne this week, down from €635 per tonne late last week. Target offers for HRC for February-March delivery were heard in the range of €720-730 per tonne, whereas a European steelmaker was reported to have offered €740 per tonne to the country. Sources also expect a price of €680-690 per ton ex-works.
A local CRC offer in Italy was heard at €790/t ex-works today. This week, SteelRadar established the price for EN 10130 (DC01) CRC at USD 795.
Spain
Spain's crude steel production in November 2023 increased 22% on-year to 1.06 million mt, the highest level in eight months, according to Unesid. Production for the 12 months to November reached 11.3 million mt, the highest since March 2023, but still not far above the post-pandemic low of 10.8 million mt reached in July 2023.
Unesid also reported that Spain's scrap recycling volume surged 16% on an annualized basis to 878,000 mt in November.
This figure was the highest level in the last eight months, while the volume for the last 12 months reached 9.15 million metric tons.
Poland
This week, rebar and wire rod prices remained stable in Poland.
Last week's rebar price of 635 USD in Poland remained unchanged this week. Prices have been flat for three weeks. Meanwhile, wire rod prices maintained their flat level at 715 USD.
United Kingdom
Wire mesh prices, which have been fluctuating since last week, dropped from 597 USD to 594.50 USD and rose to 602 USD on January 8, according to SteelRadar assessments.
Following the rise, wire mesh prices decreased again to 600 USD this week.
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