This week European HRC customers have remained largely inactive, expecting local producers to decrease their prices further for May delivery. Meanwhile, while mills, especially those in northern Europe have been mainly refraining from firm offers, tradable prices have decreased once again by more than €10/mt over the past week. At the same time, interest in imported HRC is still limited as most buyers have been refusing to conclude new purchases due to longer lead times (around end of May) and the safeguard quota issue.
More specifically, HRC prices from mills in northern Europe have been rare this week, with the indicative prices remaining at €730-760/mt ex-works, which is considered “unworkable and overpriced” by most customers. Meanwhile, the tradable prices have been voiced at €720/mt ex-works for April-May delivery, down by €10/mt on the higher end of the range week on week, following several deals reported to have been signed at the abovementioned level in Germany this week. However, most buyers believe workable prices will drop further to €705/mt and below in the short run.
Offers from Italian mills have been estimated at €725-730/mt ex-works for April-May delivery, down by €5/mt week on week. At the same time, the tradable prices have been reported at around €705-715/mt ex-works levels, against €720-725/mt ex-works last week. “In Italy, I don’t think €740 delivered is accepted anymore. We are rapidly moving towards €700/mt levels,” a representative of an Italian mill told SteelOrbis.
Meanwhile, trade activity in the import segment has been minimal this week, with most offers from Asian suppliers heard at €620-650/mt CFR southern Europe, down by €10/mt on the higher end of the range week on week. Offers for ex-Vietnam HRC have been the most competitive this week, standing at €620/mt CFR, while other suppliers have been offering at around €630-650/mt CFR. Offers for ex-India HRC have been voiced at €645-650/mt CFR southern Europe, the same as last week, while in northern Europe ex-India offers have been reported at around €670/mt CFR Antwerp.
Offers from Turkey have been heard at €670-690/mt CFR southern Europe and at €700/mt CFR Antwerp, including duty, the same as last week, while no fresh deals have been reported.
