Buyers refrained from trading due to their expectations that HRC prices in Europe will continue to decrease, Fastmarkets understands.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €580.00 ($642.91) per tonne on Monday, down by €0.75 per tonne from €580.75 per tonne on Friday September 6.
The index was down by €10.00 per tonne week on week and by €38.88 per tonne month on month.
Mills in Northern Europe were heard offering October-delivery coil at €580-600 per tonne ex-works.
Buyers’ estimates of the workable price were lower, at €560-580 per tonne ex-works, depending on the tonnage. the lower end of the range was deemed “unworkable” by suppliers, however.
“The tradeable market level is below €570 per tonne ex-works,” a buyer source told Fastmarkets, adding that they expect prices to slide further.
European mills struggled to stabilize prices, but there was not enough demand in the market, the buyer said, adding: “Final consumers are not restocking and are waiting to see how the market will develop by the end of September and the beginning of October.”
“I think that, this year, we will see prices below €500 per tonne ex-works,” a second buyer source told Fastmarkets. “The main problem is and will still be low demand.”
This, combined with decreasing prices of main raw materials and strong competition from imports, will continue to have a negative effect on prices, according to the second buyer.
“China is offering [HRC] at €550 per tonne CFR Antwerp, including all customs and taxes. And with the end of the year approaching, [European] mills will look for production capacity utilization, and prices will drop further,” the second buyer said.
A third buyer source said that prices would continue to decrease but was not sure at what levels the rock bottom would be reached.
In terms of imports, Vietnamese HRC was heard offered to Northern Europe at €525 per tonne CFR, but this price was not largely confirmed by market participants.
According to Fastmarkets’ sources, such offers would remain unattractive for the European market due to long delivery times — around four months from the initial order — and possible complications related to the anti-dumping duties.
In Southern Europe, Fastmarkets calculated its corresponding daily steel hot-rolled coil index domestic, exw Italy at €578.33 per tonne on Monday, down by €1.91 per tonne from €580.24 per tonne on Friday.
The Italian index was down by €11.67 per tonne week on week and by €39.80 per tonne month on month.
Sentiment in the Italian market was also largely negative, sources told Fastmarkets.
Offers of HRC in Italy were heard at €600 per tonne CPT from domestic and European suppliers for material with October lead times.
But buyers’ estimates of the tradeable price were at €570-580 per tonne ex-works.
Trading in the region remained limited and buyers in the Italian market also thought prices would continue to plummet, sources said.
Published by: Darina Kahramanova
