European traders are continuing to look for import options and have even made some bookings of Chinese cold rolled coil in recent weeks, to secure volumes for clients suffering from scarce availability in Europe.
According to market participants surveyed by Kallanish, Chinese CRC was ordered last week, after which offer prices have gone up further, making it no longer competitive.
The CRC ordered is understood to be of 1mm thickness, to be shipped in August and expected to arrive in October in southern Europe. The price is reported to be €950/t ($1,156) cfr southern Europe, with an anti-dumping duty of 20.5% to be added.
At the end of April China confirmed the cancellation of 13% rebate rates for most steel exports, but spared CRC from this change. Nevertheless, further changes to rebates can still happen, according to market analysts in China. “We have decided to take the risk of the potential 13% rebate change,” a trader ordering Chinese CRC confirms. “We shall see – if this happens, we would make a loss on the trade.”
Meanwhile, hot rolled coil offers from importers are reported to be scarce this week as India is not in the market and Turkish mills are preparing for the Eid holiday. Even with the latest duties confirmed for Turkish HRC, offers could be in line with the latest European domestic quotes – €1,000-1,100/t cfr including duties. But the latest spike in scrap prices is set to push Turkish offers up further.
Emanuele Norsa Italy