HRC demand in Europe has showed little improvement this week and, with a seasonal downturn in consumption expected through the next months, price gains are seen as unlikely. Still, mills appear to be well-booked, which has helped them avoid deeper price cuts. At the same time, interest in imports has remained modest, though some occasional deals are reported to have been concluded with discounts.
More specifically, local HRC prices from mills in northern Europe mainly for July deliveries have remained at €670-700/mt ex-works, the same as last week. In Italy, most offers from mills are still estimated at not higher than €650/mt ex-works, though, according to sources, some suppliers are reported to be offering at lower levels of around €620-630/mt ex-works.
“While domestic mills weren’t in a hurry to slash prices amid weak market activity, they seemed to have enough on their books to hold firm. Still, industry insiders said bigger orders could unlock more room for negotiation, as second-quarter pricing is mostly accounted for,” a market insider told SteelOrbis.
Meanwhile, the tradable price levels both in the north and Italy have been moving sideways, or showing a slight downward bias in the north, staying at €640-655/mt ex-works, down by €5/mt on the higher end of the range week on week. Meanwhile, workable prices in Italy have been estimated at €620-630/mt ex-works, the same as last week, though some say deal prices have also been reported at €610/mt ex-works this week.
“Demand for HRC has been subdued for an extended period and, given the seasonal downturn in consumption expected in June and July, the potential for price hikes seems minimal,” another source said.
In the import segment, most offers in southern Europe have been ranging at €530-580/mt CFR, the same as last week. However, according to sources, talk about discounted offers for ex-Indonesia HRC at €520/mt CFR southern Europe, has been circulating in the market this week, while most customers have been reporting ex-Indonesia HRC at around €530-550/mt CFR, up by €15/mt on the higher end of the range week on week. “We have also heard some trial ex-Malaysia offers at €500/mt CFR Italy, but with no deals so far,” a market insider said.
Offers from Indian suppliers have been rare in Europe this week since, according to sources, Indian producers have been focused on local sales, though indicative prices for ex-India HRC have been estimated in southern Europe at around €560-580/mt CFR, compared to €570-580/mt CFR.
In the meantime, a number of sources have reported an ex-Turkey HRC deal signed at €540/mt CFR, including duty. However, talk about ex-Turkey deal prices through traders and with extras has also been circulating in Spain at €585/mt CFR, including duty.
Furthermore, offers from Saudi Arabia have been voiced at around €550-560/mt CFR southern Europe, the same as last week.