In general price levels have hardly shown any change in the southern European flats markets and are similar across the various countries and regions of southern Europe. It seems that the main difficulty in the market has its source in the contraction of demand and not in the prices. As we mentioned in our report last week, production is tightening. Thus, transactions are being observed only from the European producers or for flat products at the ports.
In Italy the destocking process is still continuing. Low end-user demand due to the global crisis has been causing the steel service centers in this country to experience hard times. Although producers' base HRC price levels are at €350-400/mt ex-works, it is heard that there are some transactions at lower levels.
Although import HRC offers for 90-day deferred payment in Europe vary depending on origin, general price levels are at €345-360/mt CFR southern Europe. Import CRC offers are at €420-430/mt CFR southern Europe. However, some transactions at lower levels are also observed.
Turning to plates, ex-India plate offers are at €630-650/mt CFR southern Europe. In general, traders' offers are at €480-500/mt CFR southern Europe. European producers' sales price levels for plates in the local markets are at €500/mt ex-works. Due to the fluctuations in the US dollar and euro, traders' offer levels also show changes, and offers on US dollar basis have started to be heard more frequently in place of offers on euro basis.
The downtrend in flats prices in Portugal has continued. A €20/mt decrease in flats prices in this country has been observed compared to the levels of two weeks ago. In the past week HRC price levels in this market have been at €450-460/mt for 60-day deferred payment. Due to the low demand levels, it is expected that hot rolled prices may see a further decrease. On the HDG side, stock levels are declining in Portugal. A Portuguese HDG producer's base price level is at around €500/mt ex-works. HDG base prices have declined by €20/mt compared to a month ago.
Looking at the Bulgarian and Romanian flats markets, due to the strong stock levels and slow demand, hardly any interest in imports is observed. The HRC price level of local Bulgarian flats producer Kremikovitzi, which is known to be working at reduced capacity, is at around €330/mt ex-works. Meanwhile, Stomana's plate price level is at around €435/mt in the local market. On the other hand, traders' offers to Bulgarian buyers for Ukrainian origin plates are at approximately $570/mt CFR.
In Romania, the flat producer's base price level for hot rolled material is at around €350/mt CFR; however, the price level for hot rolled sheet in the local market is at €375/mt delivered to customer for 60-day deferred payment.
€1 = US$1.25928