Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €635.00 ($691.48) per tonne on Tuesday, up by €0.42 per tonne from €634.58 per tonne the previous day.
But the index was down by €9.58 per tonne week on week and down by €21.25 per tonne month on month.
Firm offers were rare in the market, while buyers’ estimates of tradeable prices were reported between €630 and €650 per tonne ex-works.
European producers were mulling price increases from September, according to several sources, amid expectations of increased trading and tighter supply, due to maintenance work at some mills.
Some mills gave price ideas of €700 per tonne ex-works for October-November rolling HRC. But other market sources pointed out that some mills still have September-rolling HRC available.
“Steel-service centers form their pricing policy based on expectations of [HRC] offer prices starting with a ‘7’ [meaning €700 per tonne or more]. However, it is still debatable whether such prices could be achieved,” a trading source said.
Buyers were skeptical that such massive rises would actually be accepted, considering the gloomy prospects for consumption.
“End-user demand is likely to remain low,” a second trader said. “We do expect some restocking, because distributors and steel service centers will need to close gaps in [their] stocks, but restocking is likely to be limited.”
Fastmarkets’ calculation of its daily steel hot-rolled coil index, domestic, exw Italy, was €627.50 per tonne on Tuesday, down by €2.50 per tonne from €630.00 per tonne the previous day.
The Italian index was also down by €6.18 per tonne week on week, and down by €10.83 per tonne month on month.
There was no trading in the Italian market due to seasonal absences. Local mills and buyers were expected to come back to the market in the week starting August 28.
Market sources suggested that Italian mills were likely to push offers to €700 per tonne ex-works, but doubted that such prices would be accepted by buyers, given the slow demand and the availability of import tonnages bought at competitive prices, expected to arrive into the market during September.
Currently, buyers’ estimates of tradeable prices for HRC were no higher than €620-640 per tonne ex-works.
Offers of November-December delivery HRC from Asian mills to Italy were reported at €600-630 per tonne CFR.
Published by: Julia Bolotova
