On Friday October 6, the European Commission (EC) imposed fixed charges in the range of €17.60-96.50 ($20.66-113.29) per tonne as a trade defence measure against HRC originating from Brazil, Iran, Russia and Ukraine.
“There will be [fewer] non-EU sources present in the market, which will make the position of the EU mills stronger,” a representative of an Italian steel service centre said. “At the moment, prices are stable but EU mills have been insisting on price rises.”
The trade defence measures might not result in an immediate rise in domestic HRC prices, because EU producers are now trading material to be rolled in November-December and the market is entering a traditionally slow destocking period.
But the mills are likely to achieve a rise in transaction prices in the coming few months, according to market sources.
A representative of Italian steel distributors association Assofermet said that the fixed duty per tonne makes it “almost impossible”...