The HRC market across Europe has been slowly restarting after the traditional summer break, with only a few trades reported in the week starting Monday August 26.
“It’s still very quiet. Buyers are coming back, but nobody is hungry for [HRC] tonnages,” a mill source in Northern Europe said.
Offer prices from suppliers in Germany were heard around €590-600 ($655-666) per tonne ex-works for HRC with lead times around six weeks.
Sources, however, noted that suppliers were willing to provide discounts for bigger tonnages.
In the Benelux area, one mill was heard selling HRC at €570 per tonne ex-works. Another supplier in the region was trying to not go below €600 per tonne ex-works.
Some mills’ bullish intentions from end-July-early August, have vanished due to a lack of real demand.
“Some suppliers were aiming for a price increase for October delivery HRC, but de-facto, prices are sliding,” a buyer source said.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €591.25 per tonne on Friday, down by €1.25 per tonne from €592.50 per tonne the previous day.
The Northern Europe index was down by €10.58 per tonne week on week and by €33.75 per tonne month on month.
Sources have different opinions regarding price trend for September. Some buyers suggested there was still room for a decrease considering oversupply and limited real demand.
Other buyer sources and most mill sources claimed that HRC prices have hit rock bottom and restocking in September should aid price stabilization.
“It looks like there will be a fight for “emergency” [HRC] tonnages among mills, to fill gaps in order books. As soon as they [mills] fill order books enough, they’ll try to increase [HRC] prices,” a second buyer source said.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was calculated at €591.25 per tonne on Friday, down by €3.75 per tonne from €595.00 per tonne the previous day.
The index was down by €8.75 per tonne week on week and by €30.00 per tonne month on month.
Italian market was also quiet.
“We just came back from holidays, and it’s still not clear how the market will restart in September,” a buyer source in Italy said.
Italian buyer were estimating tradeable values for large volumes of HRC no higher than €590 per tonne CPT (€580 per tonne ex-works) and at €600 per tonne CPT (€590 per tonne ex-works) for smaller tonnages.
An offer from one domestic supplier was reported at €610-620 per tonne CPT (€600-610 per tonne ex-works).
In the week to Friday, import offers remained scarce.
HRC from South Korea was on offer to Italy at €590 per tonne CFR.
From Turkey, offers were heard at €560-570 per tonne CFR, including the anti-dumping duty.
From India, offers were heard at $620 per tonne CFR.
Most suppliers were already offering late-October shipment.
Also, sources said that China-origin coil is being offered to Italy at €540-550 per tonne CFR, including duties.
Published by: Julia Bolotova
