Transaction prices in the EUHRCmarket are rapidly drawing closer to ArcelorMittal's latest target, i.e., the €970/mt ex-works level that the producer announcedlate last week. In fact, the lack of availability of material combined with good demand has pushed domestic prices up by €30 on average compared to April 14, to the current €910-950/mt ex-works level across Europe. Some sources believe ArcelorMittal may increase its offers to the €1,000/mt threshold by the end of this week or by next week. Domestic buyers are still struggling to secure the volumes they need, and lead times are in the late third quarter and beyond.
As reported previously, the uncertainties surrounding Liberty Steel and ArcelorMittal Italia are also contributing to fears of further supply shortages across Europe. The lack of supply in the EU market has increased European buyers' interest in import activities, although import offers are limited, according to sources. The current EU safeguard measures will expire at the end of June this year, and many sources believe that the European Commission will decide not to extend them, which should increase the availability of volumes from abroad. Market sources have reportedHRCoffers from South Korea at €940/mt CFR southern Europe. Recently, Turkey sold some material to southern Europe at an estimated price of around €895/mt CFR, and some to the Antwerp region at €920-925/mt CFR (duties included). Finally, workableHRCprices from India are at $1,050/mt (€870-875/mt) CFR EU, but buyers' interest in such offers is not high since India's quota has been exhausted for the current quarter.