The European domestic markets for steel hot-rolled coil showed little movement on Friday April 10, with an the absence of urgency among both buyers and sellers curtailing activity. With neither side under pressure to secure volumes, business was limited.
Nevertheless, sentiment remained positive and some mills have already indicated higher asking prices for material scheduled for delivery in the third quarter amid expectations of further reductions in import activity because of imminent sweeping changes in the region’s safeguarding system.
Second-quarter coil availability was largely exhausted at integrated mills in Germany and the Benelux area, although a few suppliers were still offering limited June-delivery HRC tonnages within the range of €720-730 ($856-868) per tonne ex-works, with estimates of workable prices at €710-720 per tonne ex-works.
No major deals were heard during the day. A seller source said that if some business was being done now it was only “back to back.”
Indications of offers for July-delivery material were heard at €740-760 per tonne ex-works earlier this week.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €720.00 per tonne on April 10, unchanged day on day.
The index was, however, up by €1.24 per tonne week on week and by €15.62 per tonne month on month.
The corresponding daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €700.00 per tonne ex-works on April 10, up by €1.00 per tonne from €699.00 per tonne on April 9.
The index was up by €1.25 per tonne week on week and by €12.50 per tonne month on month.
Trading in the Italian market was also muted, with no major deals reported during the day.
Market sources reported limited supplies due to a local re-roller being forced to suspend production earlier this month for technical reasons. Demand, however, also left much to be desired.
Market participants estimated a workable price to be €700 per tonne ex-works.
Industry sources from both Northern and Southern Europe said that this week was quiet because of Easter holidays, and expected at least some clarity or revival of activity next week, during the Wire & Tube trade fair in Dusseldorf, Germany, over April 13-17.
