Although sentiment has improved in the past week in the EU hot rolled coil (HRC) market, the range of domestic offer prices has remained mainly unchanged given still slow trading as most spot sales have been mainly done for only small tonnages. At the same time, business activity in the import segment has been muted, with most offers moving on a stable trend compared to the previous week, though some discounts for ex-Asia HRC have been voiced in southern Europe.
Specifically, achievable HRC spot prices have remained at €650-680/mt ex-works, with the lower levels recorded in Italy and the higher levels in northern Europe. However, offers from European mills have remained at stably high levels, standing at €670-700/mt ex-works for September delivery from Italian mills and at around €700/mt ex-works for September-October deliveries from mill in northern Europe. According to sources, the rebound is not expected to be seen until September amid slow end-users’ demand, and during July-August only very small increases could be seen.
“In the current market situation, we should focus more on preventing declines rather than on increases, as the only factor which maintains high prices is the reduced supply caused by technical issues at some European steel mills, and expected traditional summer break in August,” a market insider told SteelOrbis.
As for import segment, most foreign suppliers have maintained their offers at €610-645/mt CFR for September-October deliveries, depending on supplier, however, some offers have been voiced in the market with discounts, as sellers aim to attract buyers’ interest. In particular, offers for ex-Vietnam HRC have been heard at €610-615/mt CFR from traders, same as last week, but at €600/mt CFR directly from a mill, sources said. Meanwhile, offers for ex-India and ex-Egypt HRC have been estimated at €610/mt CFR, but according to European traders, €600/mt CFR level is estimated as more realistic. However, suppliers from Japan and South Korea have continued to offer their materials in Spain at the higher level among all suppliers, at €630-640/mt CFR and €645/mt CFR, respectively.
Furthermore, import offers for ex-Asia HRC in northern Europe have been heard at €620-650/mt CFR, same as last week, with no fresh deals have been reported so far.