Although demand for both cold rolled coils (CRC) and hot dip galvanized (HDG) steel has remained poor this week, and some European mills both in southern and northern Europe are still offering materials for December delivery due to weak order books, most mills are poised to increase their January-delivery offers, emphasizing high input costs and growing prices for imported flats in the region.
More specifically, in the domestic CRC market in the EU, tradable prices have remained unchanged over the past week at €700-720/mt ex-works, with the lower end of the range corresponding to offers in southern Europe and with the higher end corresponding to prices in the north. However, according to sources, several mills voiced their offers at €720-750/mt ex-works.
Meanwhile, import prices for CRC in southern Europe have been voiced at €680-695/mt CFR, up by €10-15/mt week on week. Specifically, following several deals for ex-Taiwan CRC at €670-680/mt CFR last week, this week new ex-Taiwan CRC offers have been heard at €680-685/mt CFR. Besides, suppliers from South Korea and Vietnam have offering their CRC at €690-695/mt CFR, against deal prices at €680/mt CFR last week.
“In my opinion, the coming months will remain challenging, though some punctual rebound is possible in the next few months, but the general trend is negative,” a Spanish trader told SteelOrbis.
At the same time, although tradable local prices for HDG are still estimated by most European buyers at €710-725/mt ex-works, the same as last week, offers at €740/mt ex-works have been heard in Italy, and some mills are reported to be aiming for €770/mt ex-works for January-delivery HDG. “We have actually heard offers for ex-Italy HDG at €770/mt delivered to Germany and for ex-Portugal materials at €800/mt delivered, but with shorter lead times than imported HDG, so importing has no sense,” a European trader told SteelOrbis. Notably, import offers for HDG have been voiced at around €785-800/mt CFR, up by $5/mt week on week. “Vietnam is offering at €800/mt CFR this week and has rejected bids for HDG 0.57mm Z140 at €785/mt CFR. So, they are not willing to go down further, at least for the time being,” another trader said.
