European HRC prices sink lower in the week to August 19

European hot-rolled coil prices slid further in the week to Friday August 19 after producers took an aggressive approach to filling gaps in their order books, Fastmarkets heard.

Despite discounts, provided by mills in Northern Europe, traded volumes have remained limited in quiet conditions.

Most buyers still had sufficient inventories and were in no rush to purchase any HRC. In fact, buyers would rather hold back and assess the post-holiday market trend, sources told Fastmarkets.

Market participants were generally sceptical about the traditional revival of buying activity in September, mainly because of the chronic overstocking and poor performance of the key consuming industries.

Producer sources, however, expected at least HRC prices to stabilize amid high production costs and the energy crisis in Europe.

Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe, at €750.00 ($752.95) per tonne on August 19, down by just €1.67 per tonne from €751.67 per tonne a day earlier.

The latest calculation of the index is down by €24.17 per tonne week on week and by €105.00 per tonne month on month.

Market sources estimated achievable prices to be between €740 and €770 per tonne exw on August 19.

Some HRC volumes traded at €750-770 per tonne exw during the week, sources said, but in general activity was slow.

Fastmarkets’ calculation of its corresponding daily steel HRC index, domestic, exw Italy, was €740.00 per tonne on August 19, unchanged from the preceding day.

The latest calculation of the Italian index is down by €30.00 per tonne week on week and by €36.67 per tonne month on month.

The calculation was based on buyers’ estimates of achievable prices reported at €720-750 per tonne exw.

The Italian market was in holiday mode during the week to August 19. Both mills and buyers in the nation were absent from the market but should return in late August or early September.

Imports
The market for imported coil was also quiet in the week to August 19.

Buyers from Northern Europe estimated the workable level for imported HRC to be €650-670 per tonne cfr Antwerp, with the most recent offers reported closer to €700 per tonne cfr Antwerp from Turkey and Asia.

Published by: Julia Bolotova