The European hot rolled coil (HRC) market has remained subdued following the Easter holiday, with demand showing little sign of recovery and prices largely unchanged. According to market sources, no significant shifts are anticipated before the second week of May. While some participants expect weakening real demand to soon exert downward pressure on domestic HRC prices, others maintain a more optimistic outlook, citing limited import availability - due to safeguard measures and antidumping duties - and a growing dependence on domestic supply as factors that could help stabilize local pricing.
More specifically, local HRC prices from mills in northern Europe for June and July deliveries have remained at €670-700/mt ex-works, the same as last week. In Italy, most offers from mills are still estimated at not higher than €650/mt ex-works, with some suppliers reported to be offering at even lower levels or around €630/mt ex-works.
Meanwhile, the tradable price levels both in the north and Italy have been moving sideways, staying at €640-650/mt ex-works in northern Europe, and at €620-630/mt ex-works in Italy, though lower bids have emerged in Italy at €610/mt ex-works this week.
In the import segment, most offers in southern Europe have remained relatively stable, though some downward bias has been seen, with prices ranging at €540-580/mt CFR, depending on the supplier, against €545-600/mt CFR last week. In particular, the most competitive offers have been voiced for ex-Indonesia HRC at around €540/mt CFR, against €550/mt CFR last week. However, according to sources, sizable lots for ex-Indonesia HRC are reported to have been booked in Europe before the Easter holiday at around €520-530/mt CFR.
Offers from Indian mills have been rare in Europe this week as, according to sources, Indian producers have been focused on local sales, though indicative prices for ex-India HRC have been estimated in southern Europe at around €565-570/mt CFR, up by €2-3/mt week on week.
In the meantime, while a number of sources reported ex-Turkey HRC offers at €580/mt CFR, including duty, versus €580-600/mt CFR last week, other claimed that offers from Turkish suppliers have declined to €560-570/mt CFR levels, including duty, following a weakening in the local market affected by slow demand and the recent slump in scrap prices.
Furthermore, offers from Saudi Arabia have also been voiced at around $650/mt CFR, which translates to around €570/mt CFR Spain.
$1 = €0.88