Domestic HRC prices are still trending down in the EU market, as transaction activities have remained very scarce amid weak demand both from end-users and distributors. As SteelOrbis previously, consumption by the automotive industry in particular is foreseen to remain weak this year due to the lack of semiconductors and other components. However, sources believe local HRC prices will hit the bottom sooner rather than later, considering the high levels of production costs.
SteelOrbis has assessed achievable base prices as standing in the wide ranges of €840-860/mt in Italy and €890-940/mt in northern Europe, both ex-works. Accordingly, the general range in the EU market is currently at €840-940/mt ex-works, compared to the levels of €890-970/mt ex-works reported on June 9. But prices in Italy are approaching the €800/mt level according to one source, as mills are said to be desperate for orders, while demand is weak due to sufficient stock levels. As costs are high, though, mills are also ready to cut production.
As for import prices, offers to southern Europe are mostly at €810-850/mt CFR, down €10/mt compared to last week. However, interest in such offers is reported to be low considering both long lead times and the ongoing downtrend of domestic prices.