In the southern European flat steel market, demand has not shown any improvements due to the summer holiday. However, since the summer holidays will end by this week, market players will return to the market and it will become clearer whether current prices will find acceptance in the market.
According to market sources in Italy and Greece contacted by SteelOrbis, in the first days of the post-holiday period, market players will first monitor the market before heading for new bookings, and domestic flat steel prices, which have not much increased during the holiday, will likely find acceptance in the market. However, probable price hikes are not expected to gain acceptance. In the Italian domestic market, hot rolled coil (HRC) prices are currently standing at €505-510/mt ($732-740/mt) ex-works.
In the meantime, Turkish HRC export offers at $735-740/mt FOB are found to be high by European buyers.
The Portugal flat steel market has maintained its sideways trend during the summer holiday, with domestic and import prices remaining at their previous levels. In the Portuguese domestic flat steel market, hot rolled sheet (HRS) prices are standing at €600-620/mt ($870-899/mt) ex-warehouse, while no new import offers from other European countries to Portugal have been heard so far. The latest HRC offers from Spain and Italy to Portugal were at €530-550/mt ($769-798/mt) CFR. Portuguese steelmaker Lusosider is expected to increase its hot dip galvanized (HDG) coil prices for September production. The producer's HDG prices were at €600/mt ($870/mt) ex-works for August production.
While the markets are looking forward to seeing how European producers and buyers, who are about to return from holiday, will react to domestic and import price levels in the coming weeks, or if prices will increase, it is thought that the upheaval and negative mood in the European economy is impacting the steel markets, curbing price hikes and causing delay of new purchases.