Domestic prices for steel hot-rolled coil (HRC) edged downward slightly in Northern Europe on Tuesday July 21, but trading activity was slow in the region, sources told Fastmarkets. Prices remained stable in Italy, with market participants citing weak market sentiment amid the approaching summer holiday time.
In Northern Europe, a buyer reported an indication of workable levels at €700-710 ($800-811) per tonne ex-works and an offer at €730-740 per tonne ex-works for fourth-quarter delivery. The higher offer was discarded due to the lack of buying interest at that level and the longer delivery lead time.
However, a second buyer said they did not believe €700 per tonne ex-works “has been achieved in reality yet” but could not provide an indication of tradable levels. “Summer vacations [are having an effect], plus the dust has to settle from the customs clearance matters first,” the same source added.
Due to a lack of fresh input from market participants, price data collected on July 20 was carried over to Tuesday’s index, in line with Fastmarkets’ methodology.
On Monday, a buyer source reported offers at €720-725 per tonne ex-works. A supplier reported deals at €705 per tonne ex-works on the same day, while offers reached €730 per tonne ex-works. The higher offer level was not considered in the index due to the lack of buying interest.
Additionally, all buyer-side price points included in Tuesday’s index were copied over to the sell side.
Market activity was slow on July 21, with trade sources citing weak demand during the approaching summer holiday period.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €712.29 per tonne on July 21, down by €1.46 per tonne from €713.75 per tonne on July 20.
The index was up by €2.29 per tonne week on week and up by €26.03 per tonne month on month.
In Italy, a trade source reported a deal from a major supplier at €700-710 per tonne ex-works for September delivery, adding that they expected a “big step would happen in September after [the summer] vacation.”
A second trader reported indications of workable levels at €710-720 per tonne ex-works. However, no transactions were reported within that range, while trading activity remained limited amid weak market sentiment. As a result, the price was not given sufficient weight to influence Tuesday’s index.
On July 20, a seller reported a deal at €700 per tonne ex-works, which was carried over to Tuesday’s index, in line with Fastmarkets’ methodology.
Fastmarkets’ daily steel HRC index domestic, exw Italy was €702.50 per tonne on Tuesday, unchanged day on day.
The index was up by €3.12 per tonne week on week and up by €20 per tonne month on month.
