Local prices for cold rolled coil (CRC) and hot dip galvanized (HDG) have dropped once again this week amid continuing slow demand from end-users in Europe, further drops in hot rolled coil (HRC) segment, coupled with growing pressure from cheaper import prices, especially for CRC.
Specifically, in the domestic CRC market in the EU, tradable prices have dropped to €780-820/mt ex-works from €810-820/mt ex-works two weeks ago, with the lower end of the range corresponding to offers in Italy at €780-800/mt ex-works, and the higher end corresponding to offers at €800-820/mt ex-works in northern Europe. In the meantime, offers from European mills for CRC have settled at €790-800/mt ex-works in Italy, down by €30-35/mt over the past two weeks, while offers from mills in the north have been voiced at €820-830/mt ex-works, down by €20/mt over the period under review.
“Order books are still thin, while CRC trade is basically in lull as there are more attractive import offers in the market. The gap between domestic and import CRC prices is almost €100/mt depending on the supplier,” a trader told SteelOrbis.
Meanwhile, import prices for CRC in southern Europe have been voiced at €705-735/mt CFR, against €730-750/mt CFR two weeks ago. In particular, offers for ex-Asia CRC have been heard in Italy at around €705-725/mt CFR, while in Spain at around €720-735/mt CFR. Offers for ex-South Korea CRC have been heard in Italy at €705/mt CFR, while those from Japan and Taiwan at around €720-725/mt CFR Italy. Suppliers from India have been offering at €720/mt CFR Spain, down by €30/mt over the past two weeks, while offers from Vietnam and Taiwan have been heard at €730-735/mt CFR Spain. “Trade is very limited now in Europe, but I believe once CRC prices hit €700/mt CFR level, purchases will revive,” a Spain based trader told SteelOrbis.
At the same time, tradable local prices for HDG in Italy have dropped by around €40/mt over the past two week, reaching €800-810/mt ex-works, while offers from Italian mills have been estimated at €820-825/mt ex-works level, versus €840-860/mt ex-works two weeks ago. Furthermore, while offers from mills in the northern Europe have been assessed at €840-850/mt ex-works, down by €20/mt, workable prices have settled at €820-840/mt ex-works, against €840-850/mt two week ago. According to sources, more demand has been seen for local HDG rather than for CRC, as the pressure from imports is weaker.
Specifically, offers for ex-Vietnam HDG Z140 have been reported at €810-815/mt CFR, while for Z100 HDG at around €800-805/mt CFR, down by €10/mt over the past two weeks. Offers for ex-India HDG Z120 have been heard at around €820-830/mt CFR, down by €5-15/mt over the past two weeks.
