“You can get HRC in under four weeks’ time on a firm bid,” a buyer in Germany said. “Mills in Europe desperately need to sell.”
Buyer estimates of the tradable price came in at €550-560 per tonne ex-works, and several sources said it was possible to get even lower prices for large orders.
“Demand is very, very weak, and bookings are rare,” a buyer source said. “So, if [producers] desperately need the volumes, prices [for HRC] can be negotiated down, especially for big orders.
“However, it is not clear to me anymore what a big order is now. In the past, 500-2,000 tonnes per buyer was a normal deal. These days, mills are happy to get 200 tonnes,” the buyer source added.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €565.00 ($628.01) per tonne on Tuesday, down by €1.42 per tonne from €566.42 per tonne on Monday September 16.
The index was down by €14.83 per tonne week on week and by €47.50 per tonne month on month.
Despite numerous claims that steel production cuts could help balance the market and alleviate pressure on prices, no such announcements have been made so far.
Source said mills were keen to maintain output to get free carbon emissions allowances, which are granted based on actual output levels.
In Southern Europe, meanwhile, Fastmarkets calculated its corresponding daily steel hot-rolled coil index domestic, exw Italy at €565.00 per tonne on Tuesday, down by €3.75 per tonne from €568.75 per tonne on Monday.
The Italian index was down by €12.50 per tonne week on week and by €47.50 per tonne month on month.
One domestic supplier was heard offering HRC at €570-580 per tonne ex-works, with bids reported at €550-560 per tonne ex-works. But sources said the mill was rejecting lower bids.
A European supplier was heard selling coil to Italy at €570 per tonne delivered and October lead times were said to be still available from Italian and other European producers.
HRC offers from Asia for November shipment were heard at €540-560 per tonne CFR to Italy, but the price was not considered workable by Italian buyers due to the small gap with domestic prices, the long lead times and the looming safeguard-related risks.
