Steel hot-rolled coil (HRC) prices edged down slightly in the domestic market of Northern Europe under pressure from the downstream market and sufficient inventory. Italian prices remained broadly stable day on day, while imports in the region increased on latest deals, sources told Fastmarkets on Wednesday September 23.
In Northern Europe, participants said that weak downstream demand was limiting price increases in the market, as buyers were not rushing to restock. Meanwhile, mills were firm on their offerings due to the lack of importing competition.
Latest indications of workable levels in the market were reported within the range of €730-760 ($836-871) per tonne ex-works on Wednesday, while offers from mills were heard at €750-760 per tonne ex-works.
Higher offers reached €780-790 per tonne ex-works but they were considered unworkable for the moment, sources told Fastmarkets.
A distributor said that demand was even falling, while mills were trying to increase prices slightly, citing high energy costs in Europe.
Thus, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €740 per tonne on September 23, down by €3.75 per tonne from €743.75 per tonne on September 22.
The index was down by €5 per tonne week on week but up by €17.92 per tonne month on month.
Meanwhile, a supplier source said that steel service centres in Germany and Italy were willing to accept limited stock replacement not higher than €750 per tonne delivered, which they indicated around €730-740 per tonne ex-works.
“There is no appetite to take substantial volumes at these prices – no real stock-outs yet and difficulties to consolidate sheet prices at target levels of €850 [per tonne] CPT and higher,” the same source said.
The supplier added that steel sheet prices were pushed down by some producers in Northern Europe, putting realistic HRC levels in line with the Italian market, where sheets were supported by higher prices.
Despite the weak downstream demand in the market, HRC prices in Italy were holding a firm workable level around €730-740 per tonne ex-works, based on sources’ indications.
A distributor said that competition in the market was strong due to low demand, leading to narrowing margins.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €735 per tonne on September 23, stable day on day.
The index was up by €6.67 per tonne week on week and by €22.50 per tonne month on month.
In Central Europe, HRC mills were heard facing difficulties with production planning due to longer steel slab deliveries, taking around 60-90 days to arrive from overseas destinations. Restricted access to raw materials such as iron ore and coke was also limiting production accordingly, a source familiar with the matter told Fastmarkets.
However, no price increases were initiated this week, and the latest levels were indicated in line with previous deals at €730-740 per tonne ex-works reported on September 16.
Fastmarkets’ weekly price assessment for steel hot-rolled coil domestic, exw Central Europe was €730-740 per tonne on Wednesday, stable week on week.
On the import side, HRC deals into Southern Europe were heard at €555-570 per tonne CFR from Turkey and at $710-720 (€620-629) per tonne CFR from India on Wednesday.
Higher offers from Turkey were reported at €640-660 per tonne CFR but no deals were confirmed at these levels. Meanwhile, Egypt was heard offering material around €628-633 per tonne CFR.
As a result, Fastmarkets’ weekly assessment of steel hot-rolled coil import, cfr main port Southern Europe was at €555-629 per tonne on September 23, up from €550-620 per tonne a week earlier.
