In addition to the holiday period in the European markets, we see that demand in Turkey and the Middle East has also been slowing down during the summer months. This stagnancy has been reflected in both prices and demand, in particular as of the month of July.
A softening has been seen in the Italian domestic market, although Ilva Group's base prices have remained at their previous levels, with its HRC standing at €800-810/mt. In the Italian domestic market, Chinese-origin HRC stands at €710-720/mt ex-warehouse, excluding VAT, while Russian-origin HRC stands at €750-760/mt ex-warehouse, excluding VAT. With regard to the Greek domestic market, the prices for HRC of 2-12 mm thickness and above are at €760/mt ex-warehouse, excluding VAT. However, these price levels are unable to attract any buyers. Meanwhile, CFR-based offers for main European ports are given at €750/mt and above, with prices for CRC standing at €30-40/mt higher than those for HRC.
Looking at the Middle Eastern markets, it is also possible to see signs of softening in price levels. Ex-China HRC offers for the Dubai market are at $1,100/mt CFR Dubai for September shipment. On the other hand, it is heard that re-export bookings are also being made in Iran to Dubai. Moving to the United Arab Emirates (UAE), a lack of briskness in demand is also observed here.
With regard to Iran, although Mobarakeh and Kaavian Steel have maintained their previous levels, prices in this country's domestic market are also weakening. Mobarakeh's domestic price for HRC is at $1,122/mt ex-works. On the other hand, while Kaavian Steel's HRC is seen at $1,283/mt in the mill's price list, it is sold in the domestic market in a price range of $1,150-1,155/mt ex-works. Meanwhile, stockists' prices in the Iranian domestic market vary in a range of $1,040-1,050/mt ex-warehouse. In the flats offers made to Iran from Russian mills, HRC is at $1,160/mt C&F Iran, while CRC is at $1,180-1,200/mt C&F Iran.
In the Saudi Arabian market, producers' prices on the domestic side have retained their previous levels. A price level of $1,200/mt ex-works is in question for HRC, whereas CRC costs $1,290/mt ex-works. Ex-China HRC offers for Saudi Arabia have recently been given at $1,160-1,170/mt CFR Saudi Arabia. The demand for HRC of 1.2-1.4 mm thickness is relatively brisk in the Saudi Arabian market.
With the commencement of the holiday season, it is obvious that European demand has lost momentum. Although prices have not indicated a very significant drop, it is hard to find a buyer at the current time. We will see in the post-holiday period whether demand in the European market will recover or otherwise. With regard to the Middle East, it may be said that purchases are being performed only in line with requirements due to the approach of Ramadan.