Foreign hot rolled coil (HRC) suppliers have continued to cut prices for southern European buyers this week, trying to boost sales amid buyers’ resistance to high quotes caused by sufficient materials in stock, the full credit lines of customers, and a lack of demand for HRC in the region amid the holidays. Besides, falling import offers have been exerting pressure on domestic prices.
Import offers have been reported at €1,100-1,150/mt CFR southern Europe, down by €20-50/mt since the beginning of the week. Moreover, on week-on-week basis, prices have lost €100/mt on average. More specifically, after a deal from India was closed at around €1,170/mt CFR at the beginning of the week, by the end of the week new offers for ex-India coils have been voiced at €1,120-1,030/mt CFR. Besides, according to market insiders, one major Indian mill has signed a deal with a customer from the EU at €1,105/mt CFR for June shipment, though this information was not confirmed by the time of publication. Meanwhile, Japanese HRC suppliers who last week offered their materials at €1,150-1,200/mt CFR have decreased their offers to €1,100-1,150/mt CFR for June shipment. Furthermore, offers for ex-China HRC have decreased to €1,100/mt CFR and even below, while the indicative offer prices for ex-Turkey coils have stood at €1,140-1,150/mt CFR excluding duty.
Workable prices in southern Europe’s HRC market are now at €1,250-1,300/mt ex-works, against €1,280-1,300/mt ex-works recorded at the beginning of this week, though most buyers are still reluctant to restock.
“In general, business activity in the import HRC market in the EU is weak due to the cautiousness of most European customers and slow demand given the Easter holiday, but lower offers are likely to attract European buyers next week,” a market insider told SteelOrbis.
