Workable prices in the EU HRC market have decreased further in the past week. Demand has been slow lately due to sufficient stocks held by distributors, and also due to buyers having full credits lines. Meanwhile, competitive import offers have been exerting pressure on domestic prices.
Mills are rumoured to be cutting their offers. For example, according to sources, while Italian mills were aiming at the €1,400/mt ex-works level in the past few weeks, they are now settling for lower prices as buyers have been opposing strong resistance to further increases. Currently, "buyers are only aiming at satisfying their most urgent needs," one local trader commented. Another source said, "After the panic buying seen in the first half of March due to Russia's invasion of Ukraine, both the price uptrend and demand have cooled down, as prices have reached record-high levels that are not sustainable in the long term." However, other sources pointed out that mills are not in a position to lower their offers significantly, as they are still bearing high production costs, and they are also offering material for June-July shipments onwards. Only Italian mills have some material available for May, sources told SteelOrbis.
Workable prices in the EU HRC market are now at €1,280-1,380, against €1,320-1,400/mt recorded last week. More specifically, a price around €1,300/mt ex-works is now more common in the Italian market, while prices of €1,350-1,380/mt can be achieved in northern Europe, both ex-works.
Meanwhile, import offers have been reported at the €1,120-1,200/mt CFR level. More specifically, a deal from India was closed at around €1,170/mt CFR, while offers from South Korea and Japan have respectively been at €1,150-1,200/mt CFR and €1,180/t CFR. At the same time, an offer from India was rumored at €1,120/mt southern Europe, for June shipment.