Domestic HRC prices in Europe have declined further this week, as weak demand and bearish sentiment continue to weigh on the market. Most buyers are refraining from new purchases, citing sufficient stock levels and expectations of further price erosion. As a result, trading activity remains subdued, with a cautious and defensive tone prevailing across the market. At the same time, import buying has remained limited and is largely focused on material for clearance before October 1, after which activity is expected to pause.
More specifically, most local HRC prices from mills in northern Europe, mainly for July deliveries, have been voiced at €600-620/mt ex-works, the same last week, however, tradable prices in northern Europe have declined further this week by around €10/mt week on week to €590/mt ex-works level. “The HRC market is expected to face further downward pressure over the summer, some estimated €570/mt ex-works as a workable price in north in the short run. Buyers anticipate a modest rebound only when summer ends or in the next quarter,” a market insider told SteelOrbis.
Meanwhile, in Italy, most offers from mills have dropped at €570-590/mt ex-works from €580-600/mt ex-works last week. At the same time, workable prices have dropped as well, falling to €550-555/mt ex-works levels, down by at least €20/mt week on week. According to sources, buyers remain cautious, with some speculative deals dipping to €535/mt ex-works - though not yet reflective of actual market levels. Still, sentiment suggests HRC prices have not reached bottom, leaving room for a further softening.
In the meantime, import trading activity in southern Europe has remained subdued this week, with most offers for import HRC in southern Europe voiced at €470-530/mt CFR, depending on the supplier, compared to €490-540/mt CFR last week. HRC offers from one of Indonesian mills have been reported at the lower end of the range or around €470-490/mt CFR, down from €490/mt CFR last week. However, according to sources, “market is not ready to buy from them and is using this price to negotiate with others”.
Besides, offers from India have been reported at $600/mt CFR southern Europe, which translates to around €520/mt CFR, down by €5-10/mt week on week. “Buyers are pushing for lower prices or around $590/mt CFR,” a market insider told SteelOrbis. At the same time, a deal for ex-India HRC has been signed at $610/mt CFR or around €530/mt CFR Antwerp, though according to sources, “it likely included extras, like 2 meters wide HRC”.
Meanwhile, offers from Turkish suppliers have varied depending on the source, with most quoted at €515–530/mt CFR, duty paid, reflecting a €5-10/mt decline week on week. However, lower offers for ex-Turkey HRC have also been heard in the market, at around $550/mt CFR or approximately €480/mt CFR, duty paid.
“Buyers are currently purchasing material for clearance by October 1st, after which activity is expected to come to a halt. This trend applies primarily to HRC, while galvanized product purchases have already stopped. Most customers are now adopting a wait-and-see approach as they await clarification on the new regulations, particularly regarding Carbon Border Adjustment Mechanism (CBAM),” a Spanish trader told SteelOrbis.
$1 = €0.87