The European hot rolled coil (HRC) market has seen little activity this week, as buyers across northern and southern Europe have largely held back from making purchases. Persistent weak demand, coupled with expectations of a further short-term price erosion, has kept trading limited. As the summer slowdown approaches, mills are eager to secure fresh orders, but tepid interest in HRC continues to strain order books.
More specifically, although most local HRC prices from mills in northern Europe, mainly for July deliveries, have been voiced at €630-640/mt ex-works, down by €5/mt week on week, tradable prices in northern Europe have been estimated at €615-630/mt ex-works, versus €620-640/mt ex-works last week.
Meanwhile, in Italy, most offers from mills have been estimated at €620/mt ex-works, the same as last week. However, workable prices have dropped to €580-600/mt ex-works, against €590-600/mt ex-works last week.
In the meantime, import trading activity has remained subdued this week, with most offers for import HRC in southern Europe voiced at €520-550/mt CFR, depending on the supplier, down by €20/mt on the higher end of the range week on week. HRC offers from one of Indonesian mills have been reported at the lower end of the range or around €510-520/mt CFR, the same as last week. However, according to sources, higher offers from other Indonesian producers have also been reported, at €550/mt CFR and slightly above. Besides, offers from other Asian suppliers, including those from India, have been reported at €535-550/mt CFR, depending on the material grade, compared to €555/mt CFR last week.
Meanwhile, official starting price offers from Turkey have been reported at relatively the same levels as last week - €540-550/mt CFR duty paid, though, according to sources, a number of customers are still estimating workable prices at an even lower level - €525-530/mt CFR, duty paid. Furthermore, offers for ex-Saudi Arabia HRC have been heard at €540/mt CFR.
Besides, according to sources, offers from Chinese HRC suppliers have been reported at $620/mt CFR, which translates to around €543/mt CFR.
$1 = €0.88