Mills in Northern Europe continued to offer HRC at €730-760 ($790-822) per tonne ex-works for material with April lead times, sources said, adding that discounts for firm bids were still available.
“Mills in Northern Europe need volumes to fill their order books [for the second quarter], which is why they are accepting lower prices,” a buyer source told Fastmarkets.
But the lower HRC prices did not result in more-active trading, sources said.
Deals for small volumes were heard at €720 per tonne ex-works in Germany.
Sources estimated the tradable market level at about €700-730 per tonne ex-works.
“Demand [is still] slow despite the lower prices. Buyers think the bottom has not been reached yet,” a second buyer source told Fastmarkets.
According to a third buyer source, customers will try to push the price down to €700 per tonne.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €718.75 ($777.64) per tonne on Monday, down by €3.38 per tonne from €722.13 per tonne on Friday February 23.
The index was down by €6.25 per tonne week on week and by €32.50 per tonne month on month.
In Southern Europe, meanwhile, Fastmarkets corresponding daily steel hot-rolled coil index, domestic, exw Italy was calculated at €715.50 per tonne on Monday, nearly unchanged from €715.00 per tonne on February 23.
The index was down by €7.83 per tonne week on week and by €29.50 per tonne month on month.
Offers to Italy of April-delivery material were heard at €740 per tonne delivered, which nets back to about €720-730 per tonne ex-works.
A fourth buyer source told Fastmarkets that trading in Italy was calm, due to high stocks and buyer expectations that prices still have further to fall.
Sources told Fastmarkets that small volumes of HRC had been traded at €710-720 per tonne ex-works.
Market participants estimated the tradable market level for April-delivery HRC at €700-730 per tonne ex-works. But the workable level for May deliveries is expected to narrow to €705-710 per tonne ex-works.
“With the policy of postponing bookings, buyers have been successfully bringing prices down,” the third buyer source said.
Sources added that import offers from Asia were available for April shipment and July arrival.
HRC from Vietnam was offered to Italy at €620 per tonne CFR, Indian HRC at €640-650 per tonne and HRC from Japan at €620-660 per tonne CFR.
Published by: Julia Bolotova, Darina Kahramanova
