The mood in the European market for steel hot-rolled coil remained negative on Monday June 16, with trade sources reporting a lack of real demand, with approaching holidays and expectations of a further downward price correction given as key reasons for the lack of restocking activity.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €593.75 ($687.54) per tonne on June 16, down slightly by €0.25 per tonne from €595.00 per tonne last Friday.
A number of market sources reported material being available in the region at prices in the range €590-600 per tonne ex-works, but with workable prices estimated at the lower end of the range.
Nevertheless, €550-570 per tonne was still heard in bids or characterized as “wishful thinking by customers.”
There was also a rumor heard about one of the region’s major producers selling a cargo at €550 per tonne ex-works, but this could not be confirmed at the time of publication.
Fastmarkets’ daily steel HRC index, domestic, exw Italy, was calculated at €580.83 per tonne on Monday, up day on day by only €0.83 per tonne.
Workable prices for material from an integrated supplier varied within the range of €580-585 per tonne ex-works. According to the market participants, the mill was not willing to accept any lower price due to the limited supply from another producer, although a re-roller was ready to provide slight price concessions.
Nevertheless, trading activity remained muted in the southern country with prices expected to show negative dynamics.
“End users and stockists are very scared that prices might fall further, so everybody is trying to clear their stocks before vacation [period] starts,” a trading source told Fastmarkets on June 16.
Another trader source reported offers of Indonesia-origin coil at €480 per tonne early this week, versus €490-500 per tonne CFR late last week.
In Northern Europe, Indonesian coils were heard available at €530-540 per tonne CFR, and there were some reports of Indian material offered at prices as low as €520 per tonne CFR.
