Workable prices in the EU HRC market have decreased further in the past week. However, business activity has remained slow lately due to sufficient stocks held by distributors coupled with the fact that many steel producers have been refraining from giving new offers due to maintenance works and full order books. Meanwhile, competitive import offers have been exerting pressure on domestic prices.
According to sources, despite the bearishness mounting globally, most mills have been trying to avoid significant prices drops locally. For example, according to sources, while the tradable price level in Italy has been estimated at €830-840/mt ex-works, down by €10/mt week on week, Italian mills have either been keeping their offers at €850-860/mt ex-works or have simply been out of the market. “The global market is bearish but none of the European mills want to behave accordingly. At the moment, there is no market in the EU because demand and supply do not match and no transactions have been done,” a market insider told SteelOrbis.
Tradable HRC offers in northern Europe have dropped by €10/mt week on week as well, to €840/mt ex-works. However, trade activity has also been slack in the north as most suppliers have been citing full order books, giving no firm offers for HRC, while most buyers in turn have not been interested in new bookings amid sufficient stocks and the outlook for a continuing downtrend.
In the meantime, import HRC prices in southern Europe have continued to show declines this week, falling to €675-715/mt CFR, versus €690-725/mt CFR last week. More specifically, offers from Vietnam and Taiwan have been the most aggressive this week, standing at $745-760/mt CFR, or €675-688/mt CFR, down by €12-25/mt week on week. Besides, according to sources, ex-Vietnam HRC offered directly from one of the local mills has been reported at as low as €660/mt CFR Spain. “Vietnam’s Formosa has been offering HRC at $690/mt FOB, which means around €670/mt CFR southern Europe, with several deals already signed at this level. But offers from Hoa Phat should be a bit lower given the specification of the material,” an international trader said. “I think $650/mt FOB is the next level coming from Vietnam soon,” another source told SteelOrbis.
Offers from other Asian suppliers, like those from Japan and South Korea, have been voiced at around $790/mt CFR southern Europe, which translates to around €715/mt CFR. Besides, offers for ex-India HRC have remained mainly unchanged over the past week, standing at $760-770/mt CFR (€688-697/mt CFR).
Furthermore, import HRC offers in northern Europe have been voiced at €700-720/mt CFR Antwerp, down by around €10/mt week on week, with most offers coming from Asia.
$1 = €0.91