[SMM Europe Weekly Review] North-South HRC Spread Narrows to 3 EUR; Imports Squeezed by Quotas and Anti-Dumping Rules
According to SMM research, European HRC prices converged between the north and south this week, while the import market tightened further under quota and tariff constraints. In flat products, Northwest European domestic HRC EXW prices edged up 2 EUR/tonne WoW to 731 EUR/tonne EXW (818 USD/tonne EXW), with mills seeking a further 10 EUR/tonne increase for December production schedules, a service center procuring 500 tonnes at 750–760 EUR/tonne delivered, and an integrated German mill temporarily withdrawing from the spot market. Italian HRC fell 4 EUR/tonne WoW to 734 EUR/tonne EXW (821 USD/tonne EXW); despite ongoing ADI blast furnace stoppages, selective mill discounting to secure volume led to a 1,000-tonne deal at 750 EUR/tonne delivered, narrowing the North-South spread to 3 EUR/tonne. On the import front, with Turkish country-specific quotas exhausted and provisional anti-dumping duties expected at ~15%, buyers withdrew clearance applications en masse; Indian quotas were fully exhausted on October 8, and while offers to Northern Europe rose to 750–760 USD/tonne CFR, buyer counter-bids stood at only 700 USD/tonne CFR, while other Asian origins were quoted at 760–780 EUR/tonne DDP (850–873 USD/tonne DDP). In long and coated products, Italian rebar held flat at 725 EUR/tonne EXW, wire rod fell 15 EUR/tonne to 715 EUR/tonne EXW, and imported slab rose 5 USD/tonne to 585 USD/tonne CFR Italy. Looking ahead to next week, tight import supply and mill price hikes will support quotes, but sluggish end-user demand will cap upside potential, keeping prices range-bound at high levels.