Muted trading in the European hot-rolled coil market kept prices broadly stable on Friday May 22, with scarce demand undermining sentiment and limiting expectations for any near-term recovery.
A buyer source from Northern Europe mentioned “nervousness about the global economy, reduced number of working days in the region in May and June due to holidays as well, overcooked market in the previous months and high stocks” as the key reasons for the lack of activity.
The most recent bookings in Germany took place at €660-675 ($773.67-791.26) per tonne EXW, which is well below offers coming in at €690-700 per tonne ex-works.
There were no mentions of any significant sales on Friday.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €680 per tonne on May 22, down by just €0.42 per tonne from €680.42 per tonne on Thursday May 21.
The Italian HRC market remained similarly quiet. Weak demand and comfortable inventory levels at buyers continued to dampen trading activity, with offers heard at €700 per tonne delivered (€685 per tonne ex-works), whereas most recent estimates of tradeable levels came at €665-675 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €677.50 per tonne on May 22, stable day on day.
The import market was equally sluggish, with buyers unwilling to take any additional risks in the conditions of the uncertainty over the quotas distribution under the upcoming new safeguard, which is to come into force on July 1.
Most recent offers of Turkish material were heard within the range of €590-600 per tonne CFR Italy excluding anti-dumping duties.
Indian coil was heard available at $685-705 per tonne CFR, which is equivalent to €590-605 per tonne CFR Italy.
Additionally, sources reported new offers of Algerian coil coming at the equivalent of €670 per tonne CFR, which was considered too high by customers.
