As was the case in our previous market analysis, the price hike trend in the southern European flats market is continuing at full steam. As seen with import offers, price rises are also experienced for materials supplied by the domestic producers to the local market. It is expected that the southern European producers will raise their prices in the coming days as well. Especially due to the price hikes for import material - as buyers prefer the mills in their domestic market when they are urgently in need of flat products - the order books of the European mills are also full. In particular, the southern European mills are supplying materials to their customers for July shipments. Therefore, with no certain price being expressed in the market, it is expected that the HRC price will push the level of €700/mt in the Italian domestic market.
As regards the Indian domestic market, demand is robust and price hikes are being registered in the local market. Having followed the offers in the southern European market as well as the rises of recent weeks in order to gauge the price offers they would be able to make for the region in question, the Indian mills have started to give their new increased offers. As of this week, the Indian HRC offers for southern Europe stand at around the level of €700/mt. On the other hand, Indian-origin offers for galvanized material are at €800/mt CFR Europe, whereas the offers given for 0.5 mm galvanized material with 100/gr zinc coating have been raised to the level of €850/mt.
The offers given from Ukraine to Europe have also registered a rise. The offers in question are at around the level of $1,000/mt CPT Ukrainian ports, whereas the offers given for CRC stand $80/mt higher than those for HRC, and are also for early June shipments. With various price offers available for Ilyich production HRC, the mill's own offers are in a range of $900-1,000/mt FOB.
As of this week, offers for Egyptian HRC are mostly coming from trading companies that had previously taken position. While the traders' offers for Egyptian-origin HRC stand in a range of €650-660/mt CFR southern Europe, it is expected that the offer levels will indicate a rise in the upcoming weeks.
Demand for plates is also performing well in southern Europe. Meanwhile, Chinese-origin plate offers are at the level of $1,065-1,070/mt FOB. The offers given from China and India for Europe are also marking a rise. With the latest Chinese and Indian-origin price levels standing in a range of €765-770/mt CFR southern Europe, the offer levels are also expected to indicate an increase.
In southern Europe the demand for HR material is higher than that for CR and galvanized material. It is foreseen that both the producers' prices in southern Europe and also the import offer levels will be up in the days ahead.