The situation has remained broadly stable in the European HRC market in the past week. While trading activities have remained limited, local mills have been trying to maintain their offers, though most buyers have kept insisting on additional discounts. As for the import segment, the number of firm import offers has been limited, with most offers heard at mainly the same levels as last week.
More specifically, Italian HRC producers’ offers are mostly at €630-640/mt ex-works for August-September delivery, the same as last week, while the tradable level is still estimated at €620/mt ex-works, with a number of transactions reported at the above level this week. Meanwhile, producers in northern Europe have been offering their materials for August-September delivery at €630-650/mt ex-works. Still, levels of €620-630/mt ex-works are considered more realistic and achievable, according to sources.
“Business is still very slow and orders from the automotive sector are less than initially expected, while mills are currently negotiating with the automotive industry for the second half of this year,” a market insider told SteelOrbis.
“There is still a message of a possible increase for local HRC, but European producers are hungry for orders while demand leaves much to desired,” another source said.
As for the import market, trade has been limited due to the safeguard quota issue. Most offers for ex-Asia HRC have been voiced at €585-600/mt CFR, down by €5/mt week on week, with the lower end of the range corresponding to ex-Taiwan HRC offers, while offers from Indonesia and India have been reported at €600/mt CFR, mainly the same as last week.
Offers for ex-Saudi Arabia HRC have been heard at €590-605/mt CFR, while offers for ex-Turkey HRC are still estimated at around €630/mt CFR, including duty.
At the same time, while European customers are unable to book HRC from the traditional “other countries” sources due to the safeguard issue, talk about a deal for ex-Australia HRC signed at €580-585/mt CFR has been circulating in the market. “This deal is possible, but we don’t think Australia will become something bigger than occasional suppliers to the EU,” a trader in Spain said.