Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €541.67 ($604.66) per tonne on Monday, down by €3.54 per tonne from €545.21 on Friday September 27.
The index was down by €14.33 per tonne week on week and by €49.58 per tonne month on month.
Official offers remained limited in the market, with deal prices decided on case by case basis, Fastmarkets understands.
One integrated mill in Northern Europe was heard offering HRC at €570 per tonne ex-works.
But market participants estimated the workable level at €530-550 per tonne ex-works.
One buyer source told Fastmarkets the situation was likely to change once China’s Golden Week national holiday (October 1-7) had come to an end.
The source said China would change the direction of steel prices after the holidays, leading to an uptick that will even be felt in the European HRC market.
On Friday, China’s central bank announced several measures to support the economy to meet this year’s 5% growth target, resulting in positive sentiment across the Chinese steel market.
But a second buyer source told Fastmarkets the situation in Europe might turn out to be more complicated.
“The automotive industry is still struggling and destocking continues,” the source said, adding that that rock bottom HRC prices might be close and that some positive changes were likely before the end of the year.
In Southern Europe, Fastmarkets’ corresponding daily steel HRC index domestic, exw Italy was €539.00 per tonne on Monday, down by €2.67 per tonne from €541.67 per tonne on Friday.
The Italian index was down by €17.25 per tonne week on week and by €52.25 per tonne month on month.
In Italy, one domestic supplier was heard offering HRC at €560 per tonne delivered, with lead times ranging from late October to early November. This would be equivalent to €545-550 per tonne ex-works, according to sources.
Other European suppliers were heard offering HRC to Italy at a similar level, but some deals were heard at €540 per tonne ex-works, Fastmarkets understands.
Buyer estimates for the workable market level came in at €540-550 per tonne ex-works.
Some sources said that even €520-530 per tonne ex-works could be achieved for larger tonnages, although such levels could not be widely confirmed.
Interest in imported HRC, meanwhile, remained limited in Europe.
