This week both offers for cold rolled coil (CRC) and coated steel have been reported at slightly lower levels in new offers among European sellers, with extremely limited trade activity still reported in the region as demand has remained weak, with EU buyers lacking confidence to conclude new bookings for big volumes.
Specifically, in the domestic CRC market in the EU, tradable prices have settled at €700-720/mt ex-works, with offers in Italy at €700-710/mt ex-works, down by €10/mt on the higher end of the range week on week, while workable prices in the north have dropped to €700-720/mt ex-works, versus €720/mt ex-works last week. However, according to most market insiders, given some signs of positivity in the hot rolled coil (HRC) segment this week, where most European producers have refused any discounts and some have even made attempts to go higher in new offers, the mood has been improving in the CRC and HDG segments as well.
“Current prices for flats steel have sunk below production costs. With higher or at least stable prices for HRC, CRC and HDG prices have a great chance of stabilizing as well. However, it might be not enough, though mills will implement shutdowns to tighten supply,” a market insider told SteelOrbis.
Import prices CRC is southern Europe have been fluctuating this week, with most offers ranging at €670-680/mt CFR, mainly for ex-Asia CRC. However, market insiders reported an ex-Japan CRC offer at €695/mt CFR, though including trader’s costs and margin. Meanwhile, another offer for ex-South Korea CRC has been heard at as low as €630-640/mt CFR, excluding any traders’ costs. Furthermore, offers for ex-Turkey CRC have been estimated at around €700/mt CFR, though customers have been biding at €645/mt CFR.
Tradable local prices for HDG have been estimated at €710-725/mt ex-works, versus €720-730/mt ex-works last week, with the lower end of the range corresponding to offers in Italy at €710-720/mt ex-works, while workable offers in northern Europe have been heard at €720-725/mt ex-works. Meanwhile, import offers for HDG have remained at €780-795/mt CFR, the same as last week, with offers for ex-Vietnam HDG heard at €785/mt CFR. However, according to sources, most customers’ price ideas have settled at €750-760/mt CFR.
