The situation has remained broadly stable in the European cold rolled coil (CRC) and hot dip galvanized (HDG) markets in the past week. Although local mills have been trying to sustain their offers given their production costs, customers have continued to push for further discounts, though with less success than in previous weeks. At the same time, European mills have still been supported by lack of supply, although recently there has been news that Tata Steel Netherlands is going to lift force majeure on CRC deliveries which it declared back in February.
In the domestic CRC market in the EU, most producers are offering at €780-800/mt ex-works, the same as last week, though, according to sources, customers have kept insisting on additional discounts, bidding at around €760/mt ex-works in Italy, while the tradable price level in northern Europe has been estimated at €780/mt ex-works. This means workable prices have lost €20/mt week on week, although official mills’ offers have remained stable.
Meanwhile, import prices for CRC in southern Europe have been voiced at €670-690/mt CFR, depending on the supplier, down by €10-15/mt over the past week. Offers from India have been heard at €690/mt CFR, down by €5-10/mt week on week, while ex-Japan CRC offers have settled at €680-690/mt CFR, down by €10/mt. However, according to sources, most customers, especially in southern Europe, have been discussing their price ideas for ex-Asia CRC at around €655/mt CFR for August shipment. Meanwhile, import CRC offers in northern Europe have been heard at around €690/mt CFR, down by €20/mt on the higher end of the range over the past week.
In the meantime, local prices for HDG have been heard at around €790-830/mt ex-works, down by €10/mt week on week, with the lower end of the range corresponding to mills’ offers in Italy, while HDG offers in northern Europe have been voiced at €800-830/mt ex-works, down by €10-20/mt over the past week.
As for HDG import in the EU, most offers have been reported at €780-800/mt CFR, down by €10/mt week on week on the higher end of the range, with the lower end of the range corresponding to ex-Vietnam offers. “I believe business could be done soon at $800/mt CFR, which means around €730/mt CFR, but no deals have been heard so far, so that’s only my personal feeling,” an international trader said.