European CRC, HDG buyers eye imports amid high domestic prices, long lead times

European prices for cold-rolled coil and hot-dip galvanized steel are stable to slightly higher in the week to Wednesday April 5, with buyers starting to look at imports.

Lack of supply in the European domestic market, high prices and extended lead times from domestic producers have made overseas bookings more attractive for European CRC and HDG buyers lately.

Moreover, the gap between domestic and import prices has widened recently, to about €100 ($109) per tonne from around €50-70 per tonne previously. This widening has been driven in part by a slight downward correction in import prices and in part by the steady rise in domestic prices across Europe.

During the assessment week, a booking of South Korea-origin HRC to the Southern Europe were heard at €830 per tonne CFR for June shipment.

A Japanese mill was offering CRC to Europe at $900 per tonne CFR, also for June shipment.

Also, a transaction for Vietnamese 0.5 mm HDG with z100 coating was reported at $990 per tonne CFR to Southern Europe during the assessment week.

“The domestic supply [of CRC and HDG] is tight, so interest in imports is growing. Not only did Tata Steel IJmuiden have problems [after the company announced a force majeure in February], [a re-roller in Belgium] has issues with their galvanizing lines as well,” a buyer in Europe said.

Sources noted that demand for HDG coil from the automotive industry has picked up recently, but suggested it was a short-term rebound, mainly driven by the acute shortage of material.

“Automotive companies are looking to replace volumes [of HDG] they are not receiving because of the force majeure at Tata Steel,” a trading source in Europe said.

Producers in Northern Europe were offering HDG at €990-1,000 per tonne EXW and CRC at around €970 per tonne EXW, mainly for July delivery.

In Southern Europe CRC and HDG offers were heard at around at €980-1,000 per tonne delivered (€965-985 per tonne EXW). Mills in the region could offer CRC and HDG coil for July delivery, which was largely in line with the lead times offered by overseas suppliers.

Buyers’ estimations of tradeable values, however, were still at lower levels of €940-950 per tonne EXW for CRC and €960-950 per tonne EXW for HDG for Southern Europe.

As a result, Fastmarkets’ weekly price assessment for steel CRC domestic, exw Southern Europe was €940-950 per tonne on Wednesday, up by €10 per tonne from €930-940 per tonne on March 29.

The corresponding weekly price assessment for steel HDG domestic, exw Southern Europe stood at €960-970 per tonne on Wednesday, narrowing upward by €10 per tonne from €950-970 per tonne on March 29.

Published by: Julia Bolotova