During this week the southern European and Middle East flats markets, which are also having difficulties in seeing a recovery against the backdrop of the global financial crisis, have not showed any significant changes compared to the previous week. While prices are continuing their decreasing trends, production cuts are heard from mills in Russia, Ukraine and Europe.
Meanwhile, demand is slow in Italy's flats market and this situation is preventing the market from agreeing on a general common price range. Accordingly, sales prices of export materials on loaded truck basis are standing at levels of €520-580/mt ($670-780/mt) in the domestic market. It is also heard that Italian mills are offering HRC to their domestic market at €560/mt ($753/mt), for 90-day deferred payments.
On the Spanish flats market side, the slackening registered in sectors such as construction and automotive has affected the flats demand level in the country in the question. Meanwhile, HRC offers from China to Italy and Spain are at €580/mt ($781/mt) CFR. On the other hand, offers from other countries for the same material are in the range of €520-560/mt ($670-754/mt). The HRC base price levels in Spain are at €660-680/mt ($888-916/mt) ex-works.
In the Portuguese market, imported HRC prices are at levels of €720-730/mt ($970-983/mt) delivered to customer. HRC offers from Italy to this country have been at €610/mt ($821/mt) delivered to Portugal. Demand is sluggish in the local Portuguese market at the moment.
Some bookings have been heard in the Greek flats market, although demand is also weak in this country. Traders' HRC offers from Turkey to Greece are at €550/mt ($740/mt) CFR Greece, while offers for CRC are at €570/mt ($767/mt) CFR, both for 90-day deferred payment. In addition, offers from Egyptian traders to Greece are standing at €610/mt ($821/mt).
With demand on a slack trend in the Bulgarian domestic market, HRC offers in this market are standing at the level of €500/mt ($674/mt) FOB.
Although some sales have been heard in southern Europe, demand in the southern European flats market has been sluggish.