European HRC market quiet amid holidays stoppages
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €645.83 ($710.69) per tonne on Monday, unchanged from Friday August 4.
Most mills have withdrawn from the market as is typical for this time of year.
During the week to Friday August 4, producers in Northern Europe were offering November-rolling HRC at around €700 per tonne EXW.
Meanwhile, buyers’ estimates of the tradable level were heard at €630-650 per tonne EXW on Friday.
Activity was essentially non-existent across the European HRC market. Some sources were optimistic that demand and prices could pick up in September, Fastmarkets heard.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €636.25 per tonne on Monday, unchanged from Friday.
The Italian market was in holiday mode and most mills and buyers were inactive.
Buyers’ estimates for workable prices for September-October-delivery HRC were reported at €630-640 per tonne ex-works during the week to August 5.
No fresh import offers were reported.
Published by: India-Inés Levy
European HRC moves sideways amid summer slowdown
The European hot-rolled coil market traded sideways Aug. 4 as most players were absent from the spot market.
Sources said some mills were hinting at future price rises following the summer when restocking activities are expected, but that current trading was limited.
“Mills and end-users are keeping a low profile at the moment,” said a Benelux distributor.
“Our stock is sufficient including for September. Not sure where prices will go, so no reason to buy now,” the distributor added.
An Italian mill offer for September was heard at Eur700/mt EXW Italy minimum Aug. 4 but no business was reported at that level.
Sources said some mills were slowly positioning themselves for expected restocking activity after August and were thinking about increasing offer prices.
However, some sources said this would rather be to maintain current price levels amid a mixed view on sustained price increases in Q4.
The European market is expected to remain quiet in August amid maintenance works and summer stoppages at suppliers.
Platts daily HRC assessments in Italy and in the Ruhr region were assessed unchanged Aug. 4 at Eur635/mt EXW Italy and Eur640/mt EXW Ruhr, respectively.
Platts is part of S&P Global Commodity Insights.
Author Laura Varriale
European HRC market stays quiet while talks of Q4 quota import levels increase
The European hot-rolled coil market remained quiet amid the summer lull while market chatter surrounded increasingly full import quotas which have resulted in material being kept on hold to be cleared at ports, sources said Aug 3.
Sources expect that particularly Italian ports have at least 300,000 mt of HRC awaiting clearance at ports for the quota period starting Oct.1.
According to the European Commission, the “other country” quota for the current quota period (July 1 to Sept. 30) had been exhausted July 25 while the current quota balance for South Korea was shown as critical Aug. 3 with 92.03% filled.
“There will be a lot of material for the end of the year [in Europe],” said an Italian service center.
“Oct. 1 could see big congestions at ports,” said the source, adding that most importers are keeping the material on hold for the next quota period to avoid a 25% duty that applies when quotas have been exhausted. Import offers into Italy were heard at Eur600-605/mt CIF Italy.
Domestic HRC prices in Italy and Northwestern Europe saw no change. One mill source said prices ex-mill would be Eur670-680/mt ex-works Ruhr, while another distributor said prices from Central-Eastern Europe were at Eur620-630/mt EXW, although buying remained limited.
An Italian mill was heard to offer at Eur660-680/mt EXW for prompt.
The daily Platts assessments for HRC EXW Ruhr and HRC EXW Italy remained unchanged Aug. 3 at Eur640/mt and Eur635/mt, respectively.
Platts is part of S&P Global Commodity Insights.
Author Laura Varriale, Maria Tanatar
Italian September tube may hike on costlier HRC
Italian welded tube prices are seen increasing in September, in line with the expected increases in coil values. The welded tube market remains subdued, with demand weak and prices depressed in most European countries, sellers and buyers tell Kallanish.
Tube values continue to lag behind hot rolled coil tags due to weak downstream demand. Uncertainty is dominating the market, which is now quiet due to the August holiday break. Discounts remain at 37-39 points, with purchases implemented only back-to-back and prices unsustainable compared to processing costs.
Commodity grade 40x40x3 product remains at €800/tonne ex-works, which provides practically no margin. While some positive signals are coming from the automotive sector, many other industries are ordering low volumes and distributors are keeping stocks low. Tube sales in July and the first week of August are reported to be weak with no significant restocking occurring.
The Italian and European HRC market is however forecast to become livelier in September and prices to increase, pushed up by the exhaustion of EU import quotas. Third-quarter quotas from Vietnam, Indonesia and other Asian countries are already exhausted, while few tonnages remain from Korea. Buyers can import only from Turkey, whose suppliers are offering higher prices, as well as from India.
HRC buyers say Korean suppliers will give no allocations to Italy for Q4 and new import quotas will expire on 1 October, the same day as they are renewed. Amid the general downturn of the steel sector in Europe, this seems the only good news for September, and both coil and coil derivative prices are seen increasing, albeit gradually. The market remains fragile. Downstream demand and consumer confidence are seen remaining weak, with no surprises until the end of the year.
The target for re-rollers is to reach 35 points for tube discounts. Sources see September HRC prices at €700/t ($766) base ex-works.
Natalia Capra France
