Some EU HRC mills return with offers, sentiment negative

Some Northwest European steelmakers returned to the market with offers on May 24, as the outlook remained bearish on lower costs and limited demand.

One of the three German coil producers has returned to the spot market with HRC offers at Eur770/mt delivered. Two other mills have been holding back from making offers, sources said.

A Benelux-based integrated mill has been reported to offer HRC at Eur760/mt ex-works.

Market participants estimated tradable values at Eur750-770/mt ex-works Ruhr.

Platts assessed domestic prices for hot-rolled coil in Northwest Europe unchanged on day at Eur755/mt ex-works Ruhr on May 24.

Previously mills in the region had been planning to return to the market with offers for September rolling coil in June.

“When more mills would return with offer in June, they might find that the buyers have already replaced domestic coil with import,” a trader said. “So, in a way, it makes sense to start offering now, although market mood is negative.”

Competitive import offers have been the main factor driving domestic prices down over the past months. Although Asian suppliers have been reluctant to give discounts and lead times have gotten longer, the spread between domestic and overseas coil prices remain wide, adding negative pressure on European prices, sources said.

Platts assessed prices for imported hot-rolled coil in Northwest Europe at Eur620/mt CIF Antwerp on May 24, unchanged on day.

The assessment was based on offers from Asia heard at Eur605-640/mt CIF Antwerp.

Lower raw materials, energy and slab costs have also contributed to the bearish mood, sources said.

As a result, buyers have been mainly holding back from bookings as they anticipate domestic coil price decline.

Central European mills have been able to give shorter lead times compared to German mills and, in some cases, provide substantially cheaper prices.

Offers of HRC from Serbia have been reported at Eur710/mt ex-works and from Hungary – at Eur760-770/mt ex-works.

Platts assessed domestic prices in South Europe at Eur700/mt ex-works Italy on May 24, unchanged on week. The assessment was based on deals heard at Eur700-710/mt ex-works Italy.

Platts assessed prices for imported hot-rolled coil in South Europe at Eur605/mt CIF Italy on May 24, stable day on day.

Offers of HRC from Asia have been reported at Eur590-620/mt CIF Italy.

Platts is part of S&P Global Commodity Insights.

Author Maria Tanatar