The EU HRC market is still in its slow summer period which is characterized by plant stoppages and maintenance works, and so trading activities have been very quiet in the past two weeks, both in the northern and southern markets, where many players will resume their activities only at the end of the month.
Compared to early August, tradable prices have decreased by €10/mt from the lower end of the range, to €630-650/mt ex-works. More specifically, achievable prices are currently in the €630-640/mt range in the Italian market and mostly at €640-650/mt in northern Europe, all ex-works.
At the same time, official offers from local mills both in Italy and northern Europe have been estimated at €670-700/mt ex-works, which is considered unworkable in the region. Meanwhile, local mills and buyers continue to hold different views as to how the market will trend in September, with most mills still relying on higher prices, while most buyers doubt any significant uptrend amid the expected low consumption recovery. “Mills are sustaining high offers, mainly to avoid further drops,” a market insider said.
As for the import segment, no business activity has been reported over the past two weeks, with most importers keeping the materials on hold for the next quota period to avoid the 25 percent duty that applies when quotas have been exhausted.
