Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €664.00 per tonne ($719.83) on Wednesday, down by €3.50 per tonne from €667.50 per tonne on Tuesday.
The index was also down by €19.33 per tonne week on week and by €54.96 per tonne month on month.
An integrated mill in Northern Europe has started offering HRC at €685 per tonne ex-works, a buyer source told Fastmarkets. Until recently, mills in the region had offered the material at €700 per tonne ex-works.
A second buyer source told Fastmarkets that the offer levels of the mills in Northern Europe currently vary between €670 per tonne and €700 per tonne ex-works.
A reroller from the Benelux area was heard offering HRC at €650 per tonne ex-works. The previous offers heard from this reroller were at €680 per tonne ex-works.
But demand was weak, and no major deals were heard in the market.
Fastmarkets’ sources estimated the tradeable market level to be in the range of €650-670 per tonne ex-works.
“There is a lot of pressure [on mills in Northern Europe] because demand is very poor. Mills are looking for offers,” the second buyer source said.
The second buyer source added that distributors in the region were hesitant to order new material due to their expectations that prices could fall further.
“In addition, lead times are short and there is enough material on stock,” the second buyer source told Fastmarkets.
On the other hand, the source added there was a risk should mills decide to cut output in a couple of weeks. Thus, lead times would increase.
According to the first buyer source, mills in Northern Europe were offering lead times of 4-5 weeks at present.
A seller source told Fastmarkets that sales were low this week. They also expressed doubt that the lower offers from mills would stimulate buying because downstream demand remained low.
In Southern Europe, Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was calculated at €652.50 per tonne on Wednesday, up by €0.83 per tonne from €651.67 per tonne on Tuesday.
The index was down by €12.50 per tonne week on week and by €62.50 per tonne month on month.
A sole Italian supplier was heard offering HRC at €680-690 per tonne delivered, which nets back to about €670-680 per tonne ex-works.
“However, customers in Italy were reluctant to buy,” a third buyer source told Fastmarkets.
Fastmarkets’ sources estimated the workable market level to be in the range of €640-655 per tonne ex-works.
Sources told Fastmarkets that buyers were also reluctant to buy imports, including from destinations like Japan, Taiwan, Vietnam, due to the uncertainty on what will happen with safeguard duties after June 30.
