European hot-rolled coil prices were largely flat amid subdued trading on Monday July 14, with mills resisting further price reductions, sources told Fastmarkets.
The range of offers for HRC in northern Europe remained wide, with some suppliers offering as low as €540-550 ($631-643) per tonne ex-works to fill gaps in order books before summer stoppages. Other integrated mills were aiming for higher prices at €570-580 per tonne ex-works.
One supplier reported small-tonnage deals done at €570 per tonne ex-works.
A buyer reported a bid at €530 per tonne ex-works.
But several sources pointed out that recently, even the most aggressive sellers have started rejecting lower bids.
“Looks like the order book situation is somewhat improved and there are hopes for [HRC] prices rebounding in September, so buyers who believe in trend reversal prefer to book [HRC] now,” one mill source told Fastmarkets.
Buyer sources estimated the workable price level for HRC in the region at €530-550 per tonne ex-works.
Fastmarkets’ calculation of the daily steel HRC index domestic, exw Northern Europe was €546.25 per tonne on Monday, unchanged since Friday.
The Northern European index was down by €5.00 per tonne week on week and by €47.75 per tonne month on month.
There was still no clear price direction for the post-summer market in light of slow consumption and fierce competition between suppliers.
Meanwhile, the Italian market was also slow, with very limited tonnages traded.
Fastmarkets’ daily steel HRC index domestic, exw Italy was calculated at €522.50 per tonne on Monday, down from €525.83 per tonne on Friday.
But the Italian index was down by €4.17 per tonne week on week and by €57.50 per tonne month on month.
Offers from local mills were reported at around €550-560 per tonne delivered, which nets back to around €535-€550 per tonne ex-works.
Local buyers estimated the achievable price for HRC at €510-530 per tonne ex-works on Monday.
Meanwhile, import prices were stable day on day.
Indonesia-origin HRC with September shipment was offered at €450 per tonne CFR to Italy.
From India, HRC was on offer at €510 per tonne CFR. In the week to Friday July 11, sources reported a transaction for 20,000 tonnes of India-origin coil at €495-510 per tonne CFR both to Italy and to Northern Europe.
From Turkey, HRC was on offer to Italy at €480-500 per tonne CFR duty paid.
