The European domestic market for steel hot-rolled coil (HRC) remained quiet on Tuesday June 9, with buyers postponing new deals because of high stocks and uncertainty over the details of the upcoming new safeguard regulations, particularly in regard to country-specific quotas.
In such conditions, indications of tradeable prices in Northern Europe were notably lower compared with mills’ targets. Both buyers and sellers said that workable prices were well below the €700-730 ($807-842) per tonne ex-works sought by the mills, hovering within the range of €670-685 per tonne ex-works but with no major sales heard during the day.
“The price pressure is mainly from a well-stocked market because both traders and service centres have built high levels in anticipation of this year’s challenges,” one buyer source said.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €688.50 ($795.59) per tonne on June 9, down by €3.50 per tonne from €692.00 per tonne on June 8.
The index was up by €1.00 per tonne week on week but down by €1.08 per tonne month on month.
The Italian HRC market was also quiet, with no major transactions heard during the day.
The most recent offers were reported at €700-710 per tonne delivered (€685-695 per tonne ex-works) versus indications for achievable prices heard at €665-680 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €681.88 per tonne on Tuesday, up by €1.05 per tonne from €680.83 per tonne on Monday.
The index was up by €4.38 per tonne week on week but down by €4.47 per tonne month on month.
“Transactions are so narrow that it is really difficult to report the price, which in general I would consider stable,” a buyer source said. “Everybody is waiting for the pricing increase to come through as soon as the safeguards come into effect. Depending on product, [price changes are] expected between the middle of July and the beginning of August.”
The import trade was largely said to be muted, with rumors heard about cancellations of some recent Indonesian HRC deals.
