Importers of coil in Europe are reported to be in a wait-and-see mood this week as offers from suppliers are scarce and still expensive, but uncertainty is mounting over the third and fourth quarters.
Traders report that Indian hot rolled coil suppliers were active a few weeks ago with offers as high as €860/tonne ($1,029) cfr southern Europe, but this week offers have faded. Uncertainty related to Indian supply is mostly based on the possible confirmation of EU safeguard measures after June this year.
One trader reports Turkish HRC offers this week at €870/t cfr Italy, to which duties need to be added. Interesting offers are also being received from Asian suppliers in Indonesia, Taiwan and Vietnam at some €900-920/t cfr southern Europe.
“Buyers are cautious this week, as new orders will be delivered in Q3, and many fear the market will have turned by then,” the trader comments. “I personally believe Turkish offers remain the most interesting as duties are already known and could eventually only be reduced from the provisional measures in place; Indian suppliers, on the other hand, will always have the problem of safeguard measures.”
Meanwhile, some competitive hot-dip galvanized coil offers have also been heard from Turkey, Kallanish understands.
Emanuele Norsa Italy