HRC buyers in Europe refrain from trading, prices mainly flat

The trading lull in the European hot-rolled coil market continued on Monday April 3, with buyers avoiding big purchases and producers maintaining high offers, citing good order books and reduced supply, Fastmarkets heard.
Recent production disruptions at ArcelorMittal sites in Spain and France, along with scheduled maintenance at Tata Steel IJmuiden and ArcelorMittal Dabrowa Gornicza were expected to keep HRC supply tight in Europe in the coming months, sources said.

But buyers were reluctant to make big bookings, unconvinced about the sustainability of the uptrend in summer.

“We actually expected HRC prices to correct downward in the summer, so we are careful with July-delivery bookings,” a buyer in Northern Europe said.

Integrated mills in Northern Europe maintained offers for June/July-delivery HRC at €870-900 ($948-981) per tonne EXW, while tradable values were reported at €830-850 per tonne EXW by buyers.

A reroller in the region was offering HRC for June delivery at €830 per tonne EXW, Fastmarkets heard.

As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €855.88 per tonne on Monday, down by €0.37 per tonne from €856.25 per tonne on March 31.

The latest calculation of the index was up by €3.59 per tonne week on week and by €53.20 per tonne from March 1.

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy at €846.25 per tonne on Monday, up by €1.25 per tonne from €845.00 per tonne on March 31.

The index was up by €14.77 per tonne week on week and by €61.07 per tonne from March 1.

Offers from integrated producers were heard at €880-900 per tonne delivered for June/July delivery, which nets back to about €860-880 per tonne EXW.

One reroller in Italy had limited tonnages for June-delivery HRC available at €850-860 per tonne EXW for June delivery.

Buyers’ estimates of achievable prices were closer to €860-870 per tonne delivered (€840-850 per tonne EXW.

One trading source reported a bid at €830 per tonne EXW on Monday.

Trading was quiet in Italy’s coil market on Monday, with most buyers maintaining a wait-and-see attitude and making only small bookings.

“The market is still slow, there is no apparent demand and real consumption is also rather slow,” a distributor in the region said.

Overseas HRC offers have been largely stable since March 31.

One Indian producer was offering June-shipment HRC to Italy at €750 per tonne CFR. Some sources said that price would no longer be available by the end of this week.

HRC from Vietnam and South Korea was on offer at €770-780 per tonne CFR to Italy.

Japan-origin coil was on offer at $830-840 per tonne CFR for June shipment, with deals for some limited lots reported within that range in the previous week.

HRC from one Indian supplier was offered to Italy at €760-770 per tonne CFR.

Offers from Turkey were reported at €800 per tonne CFR, duty included, for June shipment.

Published by: Julia Bolotova