Trading activity in the European import flat steel market remained subdued in early June because buyers were awaiting details on country-specific quota distribution in the new safeguard, which will come into force on July 1.
In such conditions, most buyers preferred to take a wait-and-see stance to minimize risks.
There was information circulating in the market about 40,000 tonnes of Indonesian hot-rolled coil sold to Spain in late May, but this could not be widely confirmed by the time of publication, nor could the price of the deal be confirmed.
Sources reported offers from the country varying within the range of €550-575 ($638-667) per tonne CFR in Southern Europe, with some indicating levels as low as €540 per tonne CFR.
Indian material was also heard offered within a wide range. Several sources said HRC from this origin was available at $550 per tonne FOB, with freight costs estimated at $80-90 per tonne to key European ports such as Antwerp or Marghera. This results in $630-640 per tonne CFR or €542-550 per tonne CFR.
Turkish offers were heard at €600 per tonne CFR, excluding anti-dumping duty.
As a result, Fastmarkets’ weekly price assessment for steel hot-rolled coil import, cfr main port Southern Europe was calculated at €550-600 per tonne on June 3, down from €590-605 per tonne on May 27.
Northern European import hot-rolled coil was extremely quiet during the reported week.
As a result, the corresponding Fastmarkets assessment was moved in line with Southern Europe.
Offers of Algerian HRC on a DDP basis were heard in Northern Europe within the range of €700-720 per tonne in late May. Customers considered these levels high, saying that Asian material from traders could still be purchased at €660-690 per tonne DDP.
Fastmarkets’ assessment for steel hot-rolled coil import, ddp Northern Europe was €660-680 per tonne on June 3, versus €640-690 per tonne on May 27.
In early June, DDP-basis offers of Algerian and Asian material were heard at €720-750 per tonne in Southern Europe, whereas customers were willing to pay no more than €680 per tonne DDP.
Fastmarkets thus put its assessment for steel hot-rolled coil import, ddp Southern Europe at €660-680 per tonne on June 3, versus €650-680 per tonne on May 27.
