Transaction prices in the EU HRC market have weakened further in the past week, from €940-1,050/mt to €920-1,040/mt, both ex-works. More specifically, achievable spot prices are mostly in the €920-950/mt range in the Italian market and at €1,000-1,040/mt in northern Europe, all ex-works. Transaction activities have remained weak and this, according to an Italy-based source, "suggests that if someone wants to buy 10,000 mt, the producer may grant some more discount." Domestic buyers in general are not buying, except the material they strictly need. This is due to the fact that demand from the automotive industry has remained weak, while distributors are well-stocked and high import volumes have come into the market since October 1, although subject in large measure to EU safeguard duties. As reported previously, sources believe a recovery in demand may be witnessed in November, when distributors will need to restock for shipments in the first month of 2022. Meanwhile, logistical issues may restrain supply to a certain extent, especially in Italy, now that, from today, October 15, a Covid "Green Pass", i.e., a proof of vaccination, a negative test in the previous 48 hours or recovery from the virus, has become compulsory for all workers in the country. This, according to sources, may exacerbate the lack of truck drivers in the country.
As for the import market, offers in general are in the €800-850/mt CFR southern Europe range (duties included). A sale is rumoured to have been closed at the lower end of the range today. However, no downward pressure is being felt at the moment, especially due to "rumours of Turkish mills wanting to raise their export offers upwards on the back of higher scrap market," one source said. As reported previously, India immediately exhausted its HRC quota (169,717 mt) on the first day of the fourth quarter period of the EU safeguard.