HRC prices have indicated a further slight decline in the EU domestic market in the past week, as buyers have maintained a wait-and-see approach in anticipation of further decreases and also due to some local festivities between Easter and May 1.
Workable prices in the EU HRC market are now at €1,240-1,340/mt ex-works, against the €1,250-1,360 levels recorded on April 21. More specifically, a price around €1,240-1,250/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. Italian mills are offering their June-July production material, while producers in northern Europe are mostly offering their July output.
However, several sources pointed out that buyers will have to restock in the coming weeks for material they'll need in the third quarter. As a result, the ongoing downtrend may slow down and prices may stabilize in the coming period.
At the same time, European mills continue to face high costs both for energy and feedstocks, while demand from the automotive industry is not expected to improve significantly this year.
Meanwhile, import offers have declined again this week, from €1,100-1,150/mt levels to around €1,050-1,100/mt, both CFR southern Europe. In particular, ex-Japan offers have been reported at €1,100/mt CFR, extras excluded, while offers from India and South Korea are both at €1,050/mt CFR. Offers from Egypt were at €1,165/mt CFR but are not available anymore.