Prices in the domestic hot-rolled coil (HRC) market in Europe remained largely unchanged on Thursday October 15 with modest demand limiting momentum.
Market participants agreed that customer stocks remain high with key consuming sectors such as automotive not rendering enough support amid a gloomy economic outlook in the region, whereas hot-rolled sheet prices remain low.
In such conditions HRC prices in Europe are largely moving sideways.
A trading source reported transactions from the market leader taking place in Northwestern Europe at €760 per tonne delivered, which is netting back to €740 per tonne ex-works.
Another buyer source provided an indication of tradeable levels within the range of €740-760 per tonne ex-works, adding that some small-tonnaged deals are coming through at the upper end of the range.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €745 ($832.40) per tonne on October 15, down by €1 per tonne from €746 per tonne on October 14.
The index was up by €5 per tonne week on week and up by €6.67 per tonne month on month.
The Italian market was also described as relatively quiet. This was despite limited availability of the material as practically every supplier in the country is facing production issues.
Acciaria d’Italia is soon to stop its blast furnace. Metinvest’s Ferriera Valsider has a significant backlog following the resumption of production in early September after announcing force majeure. And the market leader Arvedi has reportedly one of its hot-rolling lines stopped due to technical issues.
This, however, is not preventing customers from submitting low bids. One of the sellers reported on October 15 that customers placed bids as low as €730-740 per tonne delivered, which is netting back to €710-725 per tonne ex-works. At the same time, offers come at €760 per tonne delivered and above, which is equivalent to €740-745 per tonne ex-works plus.
Nevertheless, many buyers admit that if a customer needs material it will have to pay what mills are asking for due to the reduced availability of the material.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €743.75 per tonne on October 15, down by €1.25 per tonne day on day.
The index was up by €3.75 per tonne week on week and by €7.92 per tonne month on month.
The import market was extremely quiet this week with Turkish and Indian quotas being already significantly exceeded.
Some Indian offers were heard coming within the range of $750-770 (€670-689) per tonne cost and freight (CFR), but sources reported there is no interest in material considering the situation with the quota.
Egyptian HRC was said to be available at $750 per tonne (€670 per tonne) CFR including $25-30 per tonne Carbon Border Adjustment Mechanism (CBAM) allow.
