Trading activity in the European hot rolled coil (HRC) market has been subdued over the past week, largely due to public holidays across Europe, which have kept many buyers on the sidelines. Besides, overseas HRC attracted limited interest due to existing trade measures. However, the growing price gap between imported and domestic coil has been prompting some buyers to reconsider import opportunities.
More specifically, local HRC prices from mills in northern Europe mainly for July deliveries have remained at €670-700/mt ex-works, the same as last week. In Italy, most offers from mills are still estimated at not higher than €650/mt ex-works, with some suppliers reported to be offering at even lower levels of around €620-630/mt ex-works.
Meanwhile, the tradable price levels both in the north and Italy have been moving sideways, or showing a slight upward bias in the north, staying at €640-660/mt ex-works, up by €10/mt on the higher end of the range week on week, and at €620-630/mt ex-works in Italy, the same as last week. “The Italian market has been operating in holiday mode, with just three working days in the week ending Friday and another public holiday kicking off the following week,” a market insider told SteelOrbis.
In the import segment, most offers in southern Europe have been ranging at €530-580/mt CFR, down by €10/mt on the lower end of the range week on week. Besides, according to sources, talk about discounted deals signed for ex-Indonesia HRC at $575/mt CFR, or around €505/mt CFR southern Europe, has been circulating in the market this week. At the same time, most traders have been reporting ex-Indonesia HRC at around €530-535/mt CFR, down by €5-10/mt week on week.
Offers from Indian mills have been rare in Europe this week as, according to sources, Indian producers have been focused on local sales, though indicative prices for ex-India HRC have been estimated in southern Europe at around €570-580/mt CFR, up by €10/mt week on week.
Besides, offers from a Vietnamese producer, which is not subjected to any antidumping rates in the EU, have been voiced at $600/mt CFR, which translates to around €530/mt CFR.
In the meantime, a number of sources have reported ex-Turkey HRC offers at €550-560/mt CFR, including duty, versus €550-580/mt CFR last week.
Furthermore, offers from Saudi Arabia have also been voiced at around €550-560/mt CFR southern Europe, down by €10-20/mt week on week.
$1 = €0.88