The gradual decrease of HRC prices is continuing in the EU domestic market, as the sentiment is mostly negative and buyers are cautious due to several factors. Although availability has been tight in the past year, it has grown recently due to reduced demand from the automotive sector and a rise of import offers. Moreover, large volumes of import material that was ordered during the second quarter are expected to be cleared through customs. In fact, several sources underlined that many buyers are waiting for the new EU import quotas to kick in on October 1 "to see what happens." HRC country-specific quotas for India and Turkey are already expected to be filled quickly, which means a 25 percent duty will have to be paid on excess volumes. As mentioned, demand from the automotive sector is weak, and this is due to the persistent lack of semiconductor chips globally. For this reason, more volumes are expected to be released in the spot market in the coming period, also owing to some plant restarts. Last but not least, lots of buyers are said to have enough stocks for the time being, therefore domestic prices may decline further. In this context, at least two European mills have reportedly started offering material in the export market, specifically to Turkey.
Compared to September 17, SteelOrbis' reference prices for HRC in the EU market have decreased from €1,000-1,090/mt to €970-1,090/mt, both ex-works. More specifically, achievable spot prices are currently in the €970-1,020/mt range in the Italian market and mainly in the 1,040-1,090/mt range in northern Europe, all ex-works.
Meanwhile, import offers are also in a wide range, but all below €1,000/mt CFR Europe. According to sources, ex-India offers are at €820-840/mt CFR southern Europe, while ex-Russia offers are "slightly higher." At the same time, offers from Turkey are around €960/mt CFR, but duties included.