While most European HRC producers have kept refraining from giving new offers, market sentiment has remained strongly negative, with cheaper import offers invading the market.
At the same time, sources’ expectations that import offers would hit the bottom at €600/mt CFR southern Europe have not materialized this week, with bids for ex-Asia materials already reported at below this level.
More specifically, workable HRC prices in Europe are estimated at €750-780/mt ex-works, versus €750-800/mt ex-works last week. The tradable price level in Italy has been estimated at €750/mt ex-works, the same as last week, while prices at €770-780/mt ex-works are reported to be workable in northern Europe. According to sources, most mills both in Italy and northern Europe have been avoiding giving any new offers, expecting to return to the market with September-delivery HRC offers next month amid better market conditions, “while for now it makes no sense to compete with imports.”
Import HRC prices in Europe have continued to show declines this week, falling to €590-660/mt CFR southern Europe, versus €645-685/mt CFR last week, with Asian suppliers remaining the most aggressive. More specifically, HRC offers from Southeast Asia have been reported at around €590/mt CFR, down by €50/mt over the past week, being the most aggressive in the market. According to sources, a deal for ex-Vietnam HRC has been signed at €590/mt CFR this week, though this information has not been confirmed by the time of publication. “We heard bids from Italian buyers at €580/mt CFR, and some even at $620/mt CFR, which means €573-575/mt CFR,” an international trader said.
Meanwhile, offers for ex-Japan HRC have been heard at €660-670/mt CFR Spain, down by €5-15/mt week on week, with a deal reported to have been signed this week at €660/mt CFR for August shipment. Offers from South Korea have been voiced at around €650/mt CFR southern Europe, versus €685/mt CFR last week. At the same time, according to market insiders, suppliers from Egypt have been offering their materials at $680/mt CFR or €630/mt CFR this week.
Furthermore, import HRC offers in northern Europe have been voiced at around €620-670/mt CFR Antwerp, with the lower end of the range corresponding to deal prices for ex-Vietnam HRC, while most Asian suppliers have been offering at €660-670/mt CFR, down by €10-15/mt week on week.
$1 = €0.92