This week most European HRC producers have been more positive in terms of their offers for domestic buyers given the lower interest in imported coils due to long lead times, along with the narrower gap between local and import quotes. At the same time, the anticipation of scheduled summer maintenance works and unexpected production issues in France and Germany, in particular, may provide additional support for HRC prices in the region to recover.
More specifically, according to sources, this week, Italian mills have made attempts to increase their offers for HRC to €680-700/mt ex-works, up by €20/mt week on week, mainly for September deliveries. However, the tradable price is still estimated at €650/mt ex-works, given several deals reported to have been done at this level this week. Meanwhile, producers in northern Europe have been offering their materials at around €700-710/mt ex-works, versus €700/mt ex-works last week, for September and October deliveries. Still, lower levels at €670-690/mt ex-works, up by €10/mt week on week, are considered more realistic and achievable.
As for the import market, most offers have been heard at €610-645/mt CFR southern Europe, depending on supplier, compared to €610-630/mt CFR last week. More specifically, several deals have been reported for ex-India HRC at €600-610/mt CFR Spain this week, with most offers coming at €610-615/mt CFR, the same as last week. Meanwhile, offers for ex-Japan and ex-Taiwan have been voiced at around €615-625/mt CFR, up by €5-10/mt week on week. Besides, offers from South Korea have been heard in Spain at as high as €645/mt CFR, up by €15/mt week on week.
Furthermore, import offers for ex-Asia HRC in northern Europe have been heard at €620-650/mt CFR, versus €620-630/mt CFR last week. However, according to sources, workable prices have been at €610-620/mt CFR, with a deal for around 10,000 mt of ex-India HRC reported to have been signed at $665/mt CFR Antwerp, or €612/mt CFR.
$1 = €0.92