HRC prices have declined further in the EU domestic market in the past week though trade activity has remined in a lull in the region given that most customers have been refraining from new purchases amid high levels of stocks, while prices for import materials, from Asia especially, have been on the wane. Most European HRC producers, in their turn, have been rather inactive this week, holding back from giving new offers amid full order books and the inability to compete with foreign HRC suppliers.
Workable prices in the EU HRC market are now at €800-830/mt ex-works, against €830-840/mt ex-works reported last week. More specifically, the tradable price levels in Italy have been estimated at €800-810/mt ex-works, down by €20/mt week on week, but, according to market sources, although most mills have been avoiding giving new offers, their price level is estimated at around €830/mt ex-works, the same as last week. Meanwhile, prices at €820-830/mt ex-works have been reported to be workable in northern Europe, down by €10/mt over the past week, while mills’ price ideas have been heard at around €830-840/mt ex-works for mainly August and even September deliveries.
In the meantime, foreign HRC suppliers have continued to cut prices for European buyers this week, with Asian exporters remaining the most aggressive, though trading activity in the region has been limited as most markets have been on holiday in the first half of this week. More specifically, import HRC prices in southern Europe have dropped to €660-700/mt CFR, down by €15/mt CFR over the past week. The most competitive offers have been reported from Vietnam, Indonesia and Taiwan at €660/mt CFR, compared to €670-688/mt CFR last week. Offers for ex-India HRC have decreased as well, standing at $740-745/mt CFR (or €670-674/mt CFR), down by $20-25/mt week on week. “Most ex-India offers are at around €670/mt CFR, but we heard rumours that one of the Indian mills has already been offering at as low as €650/mt CFR,” a Spanish trader told SteelOrbis.
Offers from other Asian suppliers, such as from Japan and South Korea, have been voiced at around $760-770/mt CFR southern Europe, down by $20-30/mt week on week, which translates to around €688-697/mt CFR.
Furthermore, import HRC offers in northern Europe have also been declining this week, coming to €680-700/mt CFR Antwerp, down by €20/mt week on week, with most offers coming from Asia. Besides, according to sources, a deal for ex-Japan HRC has been reported at €690/mt CFR Antwerp this week, though this information has not been confirmed by the time of publication.
$1 = €0.90