The downtrend has continued in the EU HRC market in recent days due to slow buying activities, as expected. SteelOrbis reported HRC domestic prices at €1,000-1,130/mt ex-works on May 20, while this week the range has declined to €980-1,100/mt ex-works. More specifically, prices around €980-1,000/mt ex-works are now more common in the Italian market, while prices of €1,050/mt and above are seen in northern Europe, both ex-works. However, buyers are not in a hurry to purchase, considering both their good stocks and slow end-user demand, and therefore are still putting pressure for further price reductions. As reported previously, some sources believe the bottom level will be €900/mt ex-works, at least in the Italian market.
However, India's recent announcement on export taxes has fueled some optimism in the market, as pressure from low import offers may ease in the coming period. "The news of a 15 percent duty on India's HRC exports will certainly have an impact on the market. Personally, I think [EU domestic] prices will stop declining, although we might even hear price rises in the short period," an international trader commented, underlining that India has been a major flat supplier for the EU and that its offers have been among the lowest in the EU import market.
Meanwhile, other import offers from Asia have been heard mostly at €830-890/mt CFR southern Europe this week, down compared to last week's €890-930/mt CFR level. However, no one seems to be in a hurry to buy considering the ongoing decline of local prices. Buyers are also waiting for possible modifications of the EU's safeguard measures, which are currently subject to a review that should end on June 30.