European CRC and HDG producers avoided giving firm offers due to the weakness in the market, sticking to a “case-by-case” approach, Fastmarkets heard.
“The outlook is uncertain for October as demand from end users keeps slowing down. Steel service centers have thin order books and [are booking] less [CRC and HDG],” a mill source said.
Some mills in the region were still offering coil for October delivery, an indication of thin order books.
Slowing demand from end-user sectors was pressuring prices down, while producers were reluctant to reduce offers, citing high costs.
Buyers’ estimates of tradable values were between €730-740 ($780-791) per tonne ex-works for CRC and no higher €750-760 per tonne ex-works for HDG in Northern Europe.
One mill estimated the price for CRC at €750 per tonne EXW and around €770-780 per tonne for HDG.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe was €730-740 per tonne on Wednesday, down by €10 per tonne from €740-750 per tonne on September 13.
And the corresponding weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €750-770 per tonne on Wednesday, down by €10-20 from €770-780 per tonne seven days ago.
Import suppliers of CRC to Europe were trying to push offers a bit higher after a series of booking in the first half of September.
Notably, transactions for Asia-origin CRC for October-November shipment were done at €660-670 per tonne CFR Southern Europe earlier this month.
Unlike for hot-rolled coil, quota availability was not a problem for CRC, so buyers showed interest in bookings.
Current offers from South Korea, Japan and Taiwan were around €680-690 per tonne CFR. And a Vietnamese supplier was offering $830-840 per tonne CFR for 0.5mm HDG with Z100-120 coating for November shipment.
Published by: Julia Bolotova
