Demand remains quiet in southern European flat steel markets

Flat steel demand in the southern European markets is very quiet, while European producers have kept their flat steel prices stable. The slowdown observed in the European economies, especially in Greece, is also contributing to the sluggishness in the region's flat steel demand.
 
In the Italian domestic market, hot rolled coil (HRC) prices still stand at €530-540/mt ($761-776/mt), while flat steel demand in the country is low. Witnessing quieter demand in their domestic market and also reduced demand from Europe, Turkish flat steel producers have started to give HRC export offers at $750-760/mt. In the meantime, buyers in Italy have reportedly reduced their HRC purchase prices to the level of €500/mt ($718/mt) CFR.
 
Last week, the European Confederation of Iron and Steel Industries (EUROFER) expressed its concern regarding Turkey's increased flat steel exports to Europe and the possibility of relevant trade action. Particularly this year, Turkish flat steel producers have managed to significantly increase their exports to Europe, especially during the period when the euro was considerably stronger against the US dollar. However, economic uncertainties in Europe, particularly in Greece, and the weakening of the euro again against the US dollar have pulled down flat steel demand coming from Europe.
 
In Bulgaria also, flat steel demand lacks strength. Since the widespread market expectation is for a flat steel price softening and also since buyers are currently waiting for cargoes from previously concluded transactions to arrive, interest in imports is slow. Buyers prefer to meet their needs with ready-stock material. Last week, offers given to Bulgaria by traders for Ukrainian mill Zaporizhstal's July production hot rolled coils (HRC) were standing at the price level of $720/mt FOB Izmail.
 
In the Portuguese flat steel market, prices have shown some softening as compared to two weeks ago, while demand has slowed down significantly. Currently, hot rolled sheet (HRS) prices in the local Portuguese market are standing at the levels of €620/mt ($891/mt) ex-warehouse, while hot rolled coil (HRC) offers given to Portugal from Spain and Italy are standing at €550/mt ($790/mt), both for deliveries in Portugal. In the meantime, Lusosider's hot dip galvanized (HDG) coil base price stand at €630/mt ($905/mt) ex-works