Market participants saw potential to negotiate discounts on offers in the European hot-rolled coil market Sept. 9, with some small tonnage deals establishing a lower tradable range.
In Northern Europe, offers were heard in a range of Eur800-850/mt ex-works Ruhr, though buyers saw lower prices as achievable on the day.
The market was heard as split between mills holding at Eur800/mt and higher, versus mills willing to cut discounts for deals around Eur750/mt, ex-works Ruhr and Northern Europe.
Most indicated a Eur750-760/mt ex-works range as workable, with mill and trader sources reported deals at Eur750/mt mark for minor tonnages. A service center source also reported a deal at Eur800/mt delivered Central Europe, the equivalent of Eur750-760/mt ex-works Ruhr.
Demand in the northern market remains low on high stocks and uncertainty relating to impending energy cap decisions, with more interest in later arrival import material, in comparison to prompt delivery domestic coil.
Platts assessed HRC down Eur30/mt at Eur760/mt ex-works Ruhr.
In the Italian market, offers continue to be reported at around Eur800/mt ex-works, but sources suggested this level could be negotiated into a delivered price without much resistance. The equivalent ex-works price on current transport costs was cited at around Eur750-770/mt ex-works Italy.
Deals were reported at Eur800/mt ex-works Italy, though for specifications non-representative of the commodity market where the tradable range was lower.
The domestic assessment thus moved down Eur50/mt on the day to Eur750/mt ex-works Italy.
On the import side, a wide range of offers were reported on a range of Eur700-750/mt CIF Italy ex-Japan, India, Turkey, and Taiwan – including anti-dumping duties where applicable.
Taiwanese material was the cheapest heard, and Japanese the most expensive in a bullish import market.
With buyers planning to restock for Q1, and EU mills limiting current offers to Q4 delivery, import material is increasingly attractive to forward looking buyers.
The South European import HRC assessment was up Eur20/mt Sept. 9, at Eur720/mt CIF.
Platts is part of S&P Global Commodity Insights.
— Benjamin Steven, Maria Tanatar