As expected, the price downtrend in the EU hot rolled coil (HRC) market has not yet come to a halt within the past week, as trading activity has remained muted amid low end-user demand coupled with high stock levels at buyers, with no sizable restocking activity expected at least until the end of the summer. Besides, in line with ArcelorMittal’s recent announcement of a halt at its blast furnaces in France and Germany, market insiders expect further cuts of outputs in the region in order to balance supply and the currently reduced demand.
Prices around €820-850/mt ex-works are now more common in the Italian market, while prices of €870-900/mt ex-works are seen in northern Europe. Thus, the general range in the EU market is currently at €820-900/mt ex-works, compared to the levels of €840-940/mt ex-works reported on June 16. However, some sources reported that Italian buyers expect to buy at a maximum of €790-800/mt ex-works, while in northern Europe €870-880/mt ex-works may be the maximum workable level currently.
As for import prices, offers to southern Europe have dropped to around €760-820/mt CFR, compared to €790-850/mt CFR last week, with the lower end of the range corresponding to ex-India HRC offers. In particular, suppliers from India have decreased their offers for boron-added coils to €760-770/mt CFR southern Europe, down by €20-30/mt over the past week. Besides, according to market insiders, several sizable lots for at least 40,000 mt of Indian materials have been reportedly sold to southern Europe at $765-800/mt CFR (around €730-760/mt CFR). Furthermore, there are talks about another deal signed for ex-India HRC at $745-750/mt CFR, though this information has not been confirmed by the time of publication. "There is a huge confusion in deal prices for these Indian cargoes sold to southern Europe this week, as there were separate agreements with each customer," a market source stated. Apart from India, another transaction for ex-Serbia HRC was reported in Italy at €790/mt delivered.
At the same time, Asian suppliers, like those from Japan, Taiwan and South Korea, have been offering their materials at €780-810/mt CFR Italy, down by €10-30/mt week on week. Meanwhile, ex-Asian HRC offers have been voiced in Spain at €810-830/mt CFR, down by €20-30/mt over the past week.
Furthermore, offers from Turkey have been reported at €780-790/mt CFR Italy, duty paid, compared to €790-800/mt CFR last week, while ex-Turkey HRC offers to Spain have been voiced at around €810-820/mt CFR, duty paid.