But market sources pointed out that such prices were not widely available on the spot market and were instead “special deals with long-standing customers.”
In general, trades were reported at €620-630 per tonne ex-works in Northern Europe for HRC with four-to-five weeks of lead time.
Restocking activity was limited, market sources said, because distributors and steel-service centers generally had “sufficient stocks considering the subdued end-user demand.”
Some suppliers have withdrawn from the market in late June-early July, having closed their order books for July/August, and were expected to come back with higher offer prices for September-delivery HRC, several sources told Fastmarkets.
“There is a traditional hope for a September price rebound, so we have heard some talk about a €20-30 per tonne price rise for September-delivery coil. But it’s not clear whether there will be sufficient demand to support even such a minor rise,” a buyer source in Germany said.
“I think now everyone will wait to see how many tonnes of imported HRC are going to be customs-cleared for the third quarter, and what the duty rate will be,” he added.
Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe, at €628.75 ($675.62) per tonne on Tuesday, stable day-on-day.
The index was down by €1.25 per tonne week on week and by €5.21 per tonne month on month.
In Southern Europe, Fastmarkets calculated its corresponding daily steel HRC index, domestic, exw Italy, at €620.00 per tonne on Tuesday, also flat on-day.
The index was down by €5.00 per tonne week on week and by €10.00 per tonne month on month.
Italy’s market was also slowing down ahead of the summer break, market sources said.
In the second half of June, one local supplier was reported to have made “aggressive” sales for July/August-delivery HRC in order to fill its order book, then withdrew from the market in the week ended June 28.
The latest deals were heard done at €630 per tonne delivered, equivalent to €615-620 per tonne ex-works, while for September delivery new offers have yet to be issued.
Market sources expected local mills to push for price rises before closing for summer maintenance work.
“Maybe if [a local integrated mill] takes a longer [than usual] summer closure, it will have a chance to achieve a price rise for September-delivery coil,” a buyer in Italy said. “But in general it’s too early for September price trend forecasts – the market is too unpredictable.”
Import HRC offers to Europe were scarce, but most suppliers were reported to be hoping for rollover prices of HRC and lead times for late in the third quarter or early in the fourth.
“There are not many overseas suppliers in the market – everyone is checking the safeguarding situation,” a second buyer in Italy said.
Offers of Turkey-origin HRC for August shipment were heard at $580 per tonne FOB, which would mean about €615-620 per tonne CFR, including anti-dumping duty.
