European hot rolled coil (HRC) prices have moved down further over the past week across both northern and southern Europe, since weak demand, sufficient stock levels and growing pressure from lower import prices have continued to weigh on the market. While mills have been attempting to maintain relatively firm official offers for July delivery, achievable transaction levels have declined further amid limited buying interest and cautious sentiment ahead of the expected safeguard quota adjustments.
In northern Europe, mills’ official offers have been reported at around €705/mt ex-works for June delivery and approximately €715/mt ex-works for July delivery, compared to target offers of €715-735/mt ex-works reported last week. However, tradable prices have fallen further to €670-690/mt ex-works, versus workable levels of €680-700/mt ex-works heard previously, while some deals are reported to have been concluded at around €680/mt ex-works.
In Italy, official HRC offers from mills have been estimated at €690-705/mt ex-works for June-July delivery, compared to around €705/mt ex-works (€720/mt delivered) reported last week. According to sources, tradable prices in the Italian market have now settled at €670-685/mt ex-works, down from achievable levels of €680-700/mt ex-works heard previously, reflecting continued pressure from subdued consumption and cautious purchasing strategies.
In the import segment, activity has remained relatively limited, though lower-priced offers have continued to put pressure on the local market. Most import offers on DDP basis have been reported at around €640-650/mt DDP southern Europe, down from indicative buyer targets of €660-670/mt DDP mentioned last week. Offers from Indonesia have been voiced at €650-660/mt DDP, according to sources. “We heard rumors about a deal for around 45,000 mt of HRC booked through a trader from Indonesia this week, but the final deal price has not been disclosed so far,” a local trader said.
Meanwhile, indicative offers for import HRC on CFR basis have settled at €590-650/mt levels, down by €10/mt on the lower end of the range week on week. Ex-Turkey HRC offers have been heard at around €610-620/mt CFR, including duty, mainly the same as last week, while offers on DDP basis have settled at around €660/mt, compared to the previous indicative levels equivalent to around €680-685/mt DDP southern Europe.
Meanwhile, ex-India HRC offers have been reported at $690-720/mt CFR, equivalent to approximately €590-615/mt CFR, compared to indicative Indian offers at €600-615/mt CFR reported last week.
Furthermore, according to sources, ex-Algeria HRC offers have settled at $745-750/mt CFR, which translates to around €635-650/mt CFR, with the Algerian supplier reported to have been able to conclude a sale for around 10,000 mt at $730/mt FOB. “The estimated CFR prices is at $750/mt CFR, as freight to southern Europe is around $20-30/mt, making the material still relatively competitive compared to local European prices,” a market insider told SteelOrbis.
“Market sentiment in the EU HRC sector has remained largely negative, with buyers continuing to postpone sizeable purchases amid weak end-user demand and expectations of further price adjustments,” a representative of a mill said.
“We are closely monitoring potential revisions to EU safeguard quotas and broader trade policy developments, with some announcements regarding safeguard measures expected next Monday, May 18,” another source said. However, no major clarification has emerged so far. Until a clearer regulatory direction is provided, and demand shows signs of recovery, most sources expect the market to remain under pressure in the near term.
Author: SteelOrbis Editorial Team
