HRC prices have remained stable on average in the EU domestic market in the past week, although the price range has widened significantly. On one hand, demand has been slow due to seasonal factors, sufficient stocks, credit limits, high prices and long lead times. On the other hand, mills are still boasting good order books, and supply remains tight, also as a consequence of recent floods in Germany. Late last week, the German industrial conglomerate ThyssenKrupp stopped production in its steel division following the floods that hit western Germany, and declared force majeure. The group said that it was directly affected by the floods only slightly. However, bad weather disrupted supply and delivery chains, including road, rail and river traffic. As reported previously, most steelmakers have very limited volumes to offer for Q4 production, while others are sold out for this year.
The range of transaction prices has widened to €1,050-1,200/mt ex-works in the past week, with achievable prices between €1,050-1,130/mt in the Italian market and prices mostly in the €1,150-1,200/mt range in northern Europe, all ex-works. In Italy, prices have been weakening recently due to competitive import offers, some sources reported. HRC offers from various sources, mostly Asian countries, are mostly between €960/mt and €1,020/mt CFR Italy. Sources underlined that given the gap between HRC prices in Italy and in northern Europe, more volumes might be sold from south to north, assuming that this is logistically feasible.