- Import offers noncompetitive
- European distributors attempt to destock at low prices
Platts assessed domestic prices for hot-rolled coil in South Europe down by Eur10 on the day at Eur585/mt ex-works Italy on Oct. 11.
Deals have been reported at Eur590-595/mt delivered Italy, the equivalent of Eur580-590/mt ex-works Italy.
“[The mill] needed to fill order books for this year and they accepted lower prices,” a trader said. “This is their regular tactic in bearish market, particularly when demand is low.”
Other suppliers in Italy have not accepted lower prices, but they have also been reported to have no volumes to sell.
Interest in the imported coil has been low, as the prices have been uncompetitive compared with domestic prices, taking into the account additional costs. In addition, lead times for imported coil have been significantly longer then for the material from European mills.
As a result, Europe-based buyers have been switching from overseas material to domestic HRC.
Platts assessed imported prices for hot-rolled coil in South Europe down Eur10 on the day at Eur590/mt CIF Italy on Oct. 11, reflecting offers for coil originating from Asia heard at Eur580-600/mt CIF Italy.
Demand has remained low due to both reduced steel consumption from end users and sufficient stocks of distributors. Several sources said that mills have been competing with low offers of HRC from distributors’ stocks due to restocking by the year end.
Platts assessed domestic prices for hot-rolled coil in Northwest Europe unchanged on the day at Eur610/mt ex-works Ruhr on Oct. 11.
Deals have been heard at around Eur610/mt ex-works Ruhr and tradable values at Eur600-630/mt ex-works Ruhr.
Platts is part of S&P Global Commodity Insights.