HRC domestic prices have decreased slightly further in the EU market in the past week. While demand has been slow due to sufficient stocks held by distributors, transaction activities were paused also due to Easter holidays. According to sources, buyers are holding back from purchases also because they anticipate further price corrections. Meanwhile, competitive import offers have kept exerting pressure on domestic price
Workable prices in the EU HRC market are now at €1.250-1,360/mt ex-works, against the €1,280-1,380 level recorded on 13 April. More specifically, a price around €1,260/mt ex-works is now more common in the Italian market, while prices of €1,300/mt and higher can be achieved in northern Europe, both ex-works. Sources said Italian mills are mostly offering June-production material, while producers in northern Europe are offering their June-July output.
Demand is not expected to improve significantly in the short period, especially due to the crisis of the automotive sector. New passenger car registrations in the EU fell 20.5 percent in March and by 12 percent in the first quarter this year, both year-on-year, as previously reported by SteelOrbis. "The ongoing supply chain disruptions, further exacerbated by Russia's invasion of Ukraine, negatively affected car production," said the European Automobile Manufacturers Association (ACEA) this week.
As for the import market, demand is not particularly strong due to long lead times and risks of exhausting EU safeguard quotas, although cheap prices continued to add pressure to the European domestic market. Traders reported having heard offers at 1,100-1,150/mt CFR southern Europe, from countries such as Japan and South Korea. However, workable prices are lower than €1,100/mt. An Indian mill has closed a deal to Italy at around €1,050/mt CFR recently.