The European HRC market has remained subdued this week amid the summer break, with only a modest pickup in activity seen in the north, while in the southern region, including Italy and Spain, most participants are expected to return in September. At the same time, indicative domestic prices have edged up by €5-10/mt compared with last week’s estimates. Still, despite this slight improvement, August offers above €600/mt ex-works are widely viewed as unworkable in the current market environment.
More specifically, local HRC prices from mills in northern Europe, mainly for October delivery, have been estimated at €580-590/mt ex-works, compared to €580/mt ex-works last week. Besides, according to sources, some mills are reported to be targeting €600-630/mt ex-works for new orders. However, the tradable price level has been estimated at €560-570/mt ex-works level so far, up by €10/mt week on week.
Meanwhile, in Italy, while mills have been aiming to increase their prices for October delivery HRC to €570-580/mt ex-works, some sellers are still ready to sell at around €550-560/mt ex-works, while customers have continued to aim for €530/mt ex-works, the same as last week.
“The price rise announcements from ArcelorMittal and other producers at the end of July prompted a short-lived improvement in sentiment, leading buyers to secure HRC for autumn. Since then, however, all offers above €600/mt ex-works in August have struggled to find acceptance,” a market insider told SteelOrbis.
In the meantime, trade activity in the import segment has remained close to zero, with offers estimated at €470-530/mt CFR, depending on the supplier, where the lower end the of range corresponds to indicative offers for ex-Indonesia HRC, while other foreign suppliers’ offer prices have mainly been estimated at €515-530/mt CFR levels.
In particular, offers for ex-Turkey HRC have been heard at €520-530/mt CFR, including duty, mainly the same as last week. Besides, offers for ex-Algeria HRC have been voiced at €515-520/mt CFR, versus €515/mt CFR last week. Furthermore, offers from Indian suppliers have remained at €515/mt CFR.
