HRC buyers in Europe see no room for price rebound

European hot-rolled coil prices were stable to slightly weaker in a slow summer market, and real-demand concerns have cast a shadow on a potential post-holiday price rebound, sources told Fastmarkets on Wednesday July 17.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €627.75 ($683.76) per tonne on Wednesday, down by €3.50 per tonne from €631.25 per tonne on Tuesday.

The index was down by €3.92 per tonne week on week and by €6.00 per tonne month on month.

Mills in the region could offer HRC with lead times of around four to five weeks, indicating weak order books, sources said.

Official offers from suppliers in Germany and the Benelux region were heard at €640-650 per tonne ex-works or delivered, with an aim of €670 per tonne ex-works or delivered for September already voiced by some German suppliers.

Buyer’s estimations of tradeable prices for HRC in the region were €620-630 per tonne ex-works.

Trading in Northern Europe was persistently slow, partially due to the vacation season, sources said.

“In the south of Germany, people have already started vacations,” a buyer in the Benelux area said.

Meanwhile, buyers felt no rush to restock amid insufficient demand from end users.

“The market is dead. Mills are happy if somebody calls [to buy HRC],” a buyer in Germany said.

Despite talk of a potential post-summer price rise, industry sources were largely skeptical about a price rebound, considering slow end-user demand and low order intake from the key end-user sectors.

Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €620.63 per tonne on Wednesday, up by €0.63 per tonne from €620.00 per tonne on Tuesday.

The index was down by €8.12 per tonne week on week and by €10 per tonne month on month.

A local integrated supplier was heard offering HRC with lead times of four to five weeks at €640-650 per tonne delivered (€630-640 per tonne ex-works), with transactions heard at €630 per tonne delivered (€620 per tonne ex-works).

Lower bids reported by buyer sources at €610-620 per tonne delivered (€600-610 per tonne ex-works) were said to not be accepted by sellers.

“I imagine that such a low price [€610-620 per tonne delivered for HRC] would be possible for big tonnages, like 5,000 tonnes or more. But nobody is booking such large lots these days,” a buyer in Italy said.

The Italian market for HRC coil was largely quiet.

From Turkey, offers were heard at €600-610 per tonne CFR, including the anti-dumping duty.

From India and Saudi Arabia, offers were heard at €590-605 per tonne CFR.

Two buyers reported an offer at €580 per tonne CFR from Vietnam.

Buyers’ estimations of tradeable prices for imports were heard in the range of €560-580 per tonne CFR.

An Australian cargo of HRC was booked at €580 per tonne CFR to Italy in mid-July, Fastmarkets reported.

Published by: Julia Bolotova

fastmarkets.com