Business activity in the European coated and cold rolled (CR) steel market has remained slow this week since demand from end-users and traders has failed to improve so far. Besides, the announcement of lower prices for September delivery flats from ArcelorMittal has added to the pressure on European mills this week. At the same time, import prices have kept falling and are set to decline further, making end-users cautious as regards restocking.
More specifically, import prices for ex-Asia CRC in southern Europe have been reported at around €710-720/mt CFR, down by €20-30/mt over the past week. In particular, following several deals for ex-India CRC at $795/mt CFR Spain, or €740/mt CFR, this week most offers have been heard at levels of €720/mt CFR and below. This means the gap between import prices and local CRC quotes has been at around €130/mt, with local workable CRC prices standing at €840-850/mt ex-works.
Tradable prices for CRC in northern Europe have been voiced at around €850-860/mt ex-works, versus €870-880/mt ex-works last week. Meanwhile, offers for ex-Asia CRC have been heard at €720-750/mt CFR Antwerp this week.
Meanwhile, local prices for HDG have been estimated at €860-880/mt ex-works, down by around €10/mt week on week, with the lower end of the range corresponding to offers in Italy and with the higher end in northern Europe. Import prices for HDG have been on the wane as well, with offers for ex-Vietnam and ex-India materials voiced at around €820-825/mt CFR, though, according to sources, buyers expect to reach around €790-800/mt CFR in new deals.
This week, ArcelorMittal has decreased its CRC and HDG offers for September deliveries across Europe to €870/mt ex-works, and €890/mt ex-works, respectively, down by around €30/mt from the offers heard in early May.