HRC prices have declined further in the EU domestic market in the past week. Distributors across Europe still have sufficient stocks and so they are not in a hurry to buy and prefer waiting in view of the ongoing downtrend of prices. At the same time, competitive import offers have continued to put downward pressure on domestic prices.
Workable prices in the EU HRC market are now at €1,150-1,270/mt ex-works, against the €1,250-1,360/mt levels reported on April 27. More specifically, a price around €1,150-1,180/mt ex-works is now more common in the Italian market, while prices of €1,230/mt and higher can be achieved in northern Europe, both ex-works.
Demand from end-users has remained low and is not expected to improve significantly in the short-to-medium term, especially due to the crisis in the automotive sector. As a result, local HRC prices are projected to decrease further during May, according to sources.
Meanwhile, import offers of Asia origin HRC have been reported at around €970-1,000/mt CFR southern Europe, for July-August deliveries, contributing to the bearish sentiment in the local market. This is down €90/mt on average compared to last week. A booking of South Korean origin HRC was heard this week at €950/mt CFR Italy. Meanwhile, sources reported an ex-Japan sale at €970/mt CFR Antwerp in the past week.