[SMM Steel] European HRC: Limited Options Fuel Price Gains as Mills Hold Firm and Close Order Books
[Europe] European hot-rolled coil (HRC) steel prices continued their upward trend today. With buyers facing highly constrained procurement choices and elevated raw material input costs providing baseline support, domestic mills maintained strong bargaining leverage and successfully pushed offer levels higher. The majority of European producers have either filled or are close to completing their fourth-quarter order books, enabling them to selectively accept business at higher price points. Producers are holding back official first-quarter allocations while awaiting an upcoming key industry event next week to better gauge market reaction. On the pricing front, the Northwest European HRC ex-works price edged up to 743 EUR/mt EXW (~831 USD/mt), while the Italian domestic price matched the gains, rising to 739 EUR/mt EXW (~826 USD/mt). Broadly speaking, underlying fundamentals remain largely unchanged with weak downstream end-user demand, leaving supply contraction and cost pressures as the primary drivers of current price momentum. On imports, market participants are actively tracking the precise duty calculations and quota drawdowns for October import arrivals, particularly regarding Turkish and Indian shipments.