Although European mills have mostly returned from the summer holidays, business activity in the European HRC market has remained weak, with local mills failing to increase their offers since most buyers keep postponing new bookings due to the ongoing slowness of demand and uncertainty over the direction of prices, coupled with the sufficient stocks of most service centers who are aiming to reduce them.
More specifically, offer prices for HRC are evaluated at €590-600/mt ex-works, the same as last week, both in Italy and northern Europe, with the higher end of the range corresponding to indicative offers from mills, while the tradable prices have been estimated at €590-600/mt ex-works in the north and at €590/mt ex-works and even slightly below in Italy. “EU mills are still silent. There are no new official prices so far, while the market is maintaining a wait-and see stance,” a market insider told SteelOrbis.
“Domestic HRC prices are approaching €600/mt ex-works, while the market is expecting ArcelorMittal to decide today if they will target orders or reduce capacity. Most believe ArcelorMittal will actually push for orders and will not cut steel production in the fourth quarter, which will provoke more price declines,” other sources said.
At the same time, in the import segment trade has continued to be sluggish this week as well, due to safeguard and antidumping-related risks and slow demand. Import prices have been voiced at €540-590/mt CFR, depending on the supplier, down by €20/mt on the lower end of the range week on week. Specifically, the lower end of the range corresponds to ex-China HRC offers at €540-550/mt CFR southern Europe, including 18.1 percent duty, though, according to sources, at the beginning of the week talk about a deal for around 15,000-20,000 mt of ex-China HRC signed at €580/mt CFR, including duty, was circulating in the market. Meanwhile, offers for ex-Japan and ex-Vietnam HRC have been heard in Spain at €550/mt CFR and €560/mt CFR, respectively, though no orders have been heard this week.
Furthermore, while offers for ex-Indonesia HRC have been voiced at €590/mt CFR through traders in Spain, with no interest in the material as its price is too high, market insiders have been actively discussing ex-Indonesia HRC deals in Italy and Antwerp. No details have been provided by the time of publication, though market sources estimate the deal prices at €550/mt CFR.
Offers from Turkey have been heard at €560-580/mt CFR, including duty, depending on the supplier, against €570-585/mt CFR last week.
