European flat steel companies have been trying to pull up their prices especially for cold rolled coils (CRC), following the better mood seen in the hot rolled coil (HRC) segment, coupled with some recovery in import prices both for CRC and hot dip galvanized (HDG). At the same time, although buying interest has slightly improved in Europe, as customers have started to look for materials in anticipation of production stoppages in summer, in general trade activity has remained limited, with most mills focusing rather on long-term contracts with automotive sector than on the spot market.
More specifically, in the domestic CRC market in the EU, producers are offering at €760-790/mt ex-works, up by €10/mt week on week, with the lower end of the range corresponding to Italian mills’ offers at €760-770/mt ex-works, while CRC offers in northern Europe have been heard at €770-790/mt ex-works.
Meanwhile, import prices for CRC in southern Europe have been voiced at higher levels as well, standing mainly at €670-690/mt CFR, versus €640-680/mt CFR last week. More specifically, offers for ex-Taiwan and ex-South Korea have been voiced at €680-690/mt CFR, while indicative offers for ex-Japan CRC have been estimated at €670-690/mt CFR, the same as last week. Besides, offers for ex-India CRC have been heard at €670-680/mt CFR as well. However, customers in northern Europe have reported higher offers for import CRC, mainly from Asia, at around €690-700/mt CFR, up by €10-20/mt week on week.
Local prices for HDG have been estimated at €770-780/mt ex-works Italy and at €780-800/mt ex-works, the same as last week. Besides, according to sources, a deal for ex-Italy HDG is reported to have been signed at €790/mt delivered Germany this week. At the same time, as for HDG imports, ex-Asia offers have been heard at €770-785/mt CFR southern Europe, while HDG import prices in northern Europe have been heard at €790-800/mt CFR. Meanwhile, according to sources, several deals for ex-India HDG have been reported in Europe at around €725-730/mt CFR, which, though not been confirmed by the time of publication, is considered as “highly possible but there is a big quota risk as the Indian quota for galvanized steel for the last quarter (April to June) of the last quota year was fully utilized on April 1. So, some tons paid 25 percent duty.”
“The problem for foreign suppliers is that European customers are saying they can buy at better prices with shorter lead times from European mills,” an international trader told SteelOrbis.