The index was down by €16.40 per tonne week on week and by €51.25 per tonne month on month.
The market was quiet, and mills were avoiding giving firm offers, sources said.
“Inquiries [for new HRC tonnages] are very low, and buyers just keep talking prices down constantly,” a mill source said.
Offers in Germany were reported at €700-720 per tonne ex-works, while offers in the Benelux area from integrated producers were heard at €720 per tonne ex-works.
April-May lead times were reported to be available from local suppliers.
Italy-origin coil with April delivery was heard offered to Germany at €700 per tonne delivered.
A mill from Central Europe reportedly offered HRC to Germany at €690 per tonne delivered, with freight estimated at €40 per tonne.
Buyers estimated tradeable prices at €680-700 per tonne ex-works, with some sources reporting estimates as low as €650 per tonne ex-works.
“Demand is just not there, and on top of that, the decline in coking coal and iron ore prices… only added pressure to steel prices,” a buyer in the Benelux area said.
Even though most sources agreed that output cuts were necessary to balance the market and stop the downtrend in HRC prices, European mills were not rushing to adjust their output.
“European mills tend to choose volumes over prices. [Steelmakers] will need to reduce output now, or they will be selling [HRC] at €600 per tonne ex-works in the third quarter,” a steel service center source in the Netherlands said.
“The cycle of production cuts should accelerate,” another source in the European market said.
In Southern Europe, Fastmarkets’ steel HRC index, domestic, exw Italy was calculated at €675 per tonne on Wednesday, unchanged day on day.
The index was down by €14.38 per tonne week on week and by €68.75 per tonne month on month.
The Italian market was also quiet because downbeat expectations continued to keep trading low, Fastmarkets understands.
HRC offers in Italy were mainly heard at €690 per tonne delivered (equivalent to €680 per tonne ex-works), while some industry sources said that €680 per tonne delivered (€670 per tonne ex-works) was also achievable on larger volumes.
Local suppliers could still offer April lead times, sources said.
In the secondary market, 4mm HR sheet was heard traded no higher than €750-780 per tonne CPT, with some steel service centers reportedly offering as low as €740 per tonne CPT. Downstream sales were also reportedly very slow.
Import HRC offers from Asia were also under pressure from low demand and a downtrend in raw materials prices, sources said.
Offers from Vietnam, South Korea and Taiwan were consolidating around €585-600 per tonne CFR, but buying interest has remained low, Fastmarkets understands.
Most Asian suppliers were heard offering May-shipment HRC, which would mean June-July arrival.
An offer from Saudi Arabia was reported at €570 per tonne CFR for May shipment.
Most overseas suppliers were heard offering May-shipment HRC, which would mean June-July arrival.
