Trading has paused in the European HRC market amid due to the summer vacation, with both buyers and sellers remaining on sidelines.
“The market is on a stand-by mode. There will be no real changes until the end of August, early September, when everyone is back,” a buyer source said.
Firm offers were rare in the past couple of weeks.
One supplier in Northern Europe was reportedly aiming for €650-660 ($710-721) per tonne ex-works for October-delivery HRC.
This was above indications of tradeable levels from buyers, however, which came in at €600-620 per tonne ex-works.
Sources suggested that restocking in September might provide some limited support to domestic HRC prices, but subdued real demand would not allow for a strong rebound.
“Apparently, we will see some restocking after summer holidays, and buyers will likely try to source more [HRC] domestically, considering all trade restriction we have in place. But restocking alone is not enough for a sustainable [HRC] price recovery,” a second buyer said.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €616.25 per tonne on Tuesday, down by €3.75 per tonne from €620.00 per tonne on Monday August 12.
The index was down by €3.75 per tonne week on week and by €15.88 per tonne month on month.
In Southern Europe, meanwhile, Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was €615.00 per tonne on Tuesday, down by €2.50 per tonne from €617.50 per tonne on the previous day.
The index was down by €5.00 per tonne week on week and by €11.00 per tonne month on month.
The Italian market was also quiet because of the holidays.
Buyers estimated workable prices at €600-620 per tonne ex-works. No firm offers were reported on Tuesday.
“Mills have begun maintenance period. New [HRC] offers will be announced in a couple of weeks,” a third buyer in Europe said.
The market for imported coil was also largely quiet after news about the European Commission’s anti-dumping (AD) probe against HRC from Vietnam, India, Japan and Egypt emerged last week.
A buyer source said offers from Vietnam and India ranged €560-575 per tonne CFR.
Several sources said there was an offer from a Japanese supplier at €580 per tonne CFR to Southern Europe for October-shipment HRC.
Sources reported that several suppliers from the four countries affected by the probe said they would continue to offer HRC to Europe until the results of the investigation are announced.
October-shipment HRC from Turkish mills was offered at €570-590 per tonne CFR, including duty.
