Import hot rolled coils (HRC) prices have continued to move downwards in Spain in line with the declines seen in global flat steel prices. Despite the decrease, Spanish buyers have not been in a hurry to sign new deals because energy and raw material costs have remained too high, while the EU automotive industry has been affected by the global shortage of semiconductors and other components. Besides, most Spanish customers do not eliminate the possibility of a further downward correction before resuming buying activity.
Accordingly, this week most HRC suppliers have declined their offers for Spanish importers. More specifically, ex-India HRC offers have fallen to around €1,030-1,050/mt CFR, down by €30-50/mt since the beginning of the week and down €70/mt over the past two weeks. Besides, several importers in Spain have already reported that some new ex-India offers have been voiced at €980-1,000/mt CFR southern Europe. Meanwhile, ex-South Korea HRC offers have dropped to €1,050/mt CFR, compared to €1,080/mt CFR last week. Offers from Japan have been rare this week, falling to around €1,050-1,080/mt CFR, down by €20-50/mt week on week. “We heard several deals for South Korean and Japanese materials were done at around €1,080/mt CFR last week but more for tube makers because they give open terms to end-customers,” a market insider told.
Furthermore, many other foreign suppliers, like those from Egypt, Vietnam and Taiwan, who offered HRC at around €1,150-1,200/mt CFR Spain at the beginning of the week, have stopped offering by the end of the week and are likely to return to the market with lower prices next week.
“We are hearing lower offers from everywhere, but these offers are mainly from traders who are trying to sell in short positions to catch orders and afterwards traders will negotiate with the mills,” a Spain-based trader told SteelOrbis.
Meanwhile, local HRC prices in southern Europe, including Spain, have been at €1,230-1,250/mt ex-works, compared to €1,250/mt ex-works last week, although market insiders do not rule out that new deals have already been closed at slightly lower levels.
