Demand from final consumers remained low, with some mills in Northern Europe still offering end-November-delivery material, sources told Fastmarkets.
Buyers were very cautious and wanting to see the market situation after the international sheet metal exhibition in Hannover, Germany on October 22-25, according to sources.
Mills in Northern Europe were heard offering HRC at €580-590 ($631-642) per tonne ex-works, but were ready to be more flexible in negotiations, Fastmarkets understands.
“Demand is currently so low that mills are selling material at the old prices from before ArcelorMittal’s announcement of a price increase of €40 per tonne for all new bookings,” one buyer source told Fastmarkets.
Producers were initially pushing for offer prices of €40 per tonne higher, but would now be happy to get €10-15 per tonne more.
Buyer estimations of the workable market level were mainly at €540-560 per tonne ex-works.
Some producers shared a more optimistic view on the tradeable market level, saying that consumers who really need to book material for the beginning of next year were ready to pay slightly higher prices.
Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €555.29 ($604.03) per tonne on Thursday, up by €0.29 per tonne from €555.00 per tonne on Wednesday.
The index was up by €8.12 per tonne week on week, but down by €9.71 per tonne month on month.
In Southern Europe, Fastmarkets’ daily steel HRC index domestic, exw Italy was calculated at €551.88 per tonne on Thursday, up by just €0.21 per tonne from €551.67 per tonne on Wednesday.
The Italian index was up by €11.88 per tonne week on week, but down by €13.12 per tonne month on month.
Local suppliers were heard offering HRC at €580-590 per tonne delivered, which nets back to €570-580 per tonne ex-works.
Buyer estimations for the workable market level were lower at €540-555 per tonne ex-works.
Import offers remained uncompetitive, with European customers buying material mainly from the local market, Fastmarkets understands.
Offers from Taiwan, Japan and South Korea were heard at €580-590 per tonne CFR Italy, while Vietnamese HRC was on offer at €555-560 per tonne CFR Italy, according to sources.
Turkish HRC was on offer to Italy at €580-590 per tonne CFR, sources said.
But the workable level for imports was estimated at just €520 per tonne CFR, with some bids heard at that level but no deals confirmed.
