The European hot rolled coil (HRC) market has remained under pressure this week, with prices continuing to slide. Market participants widely expect domestic base prices in Italy to soon reach the €500/mt ex-works level, as weak demand and intensifying competition from imports weigh on sentiment. A growing influx of low-cost imports - particularly from Indonesia - has added further downward pressure on domestic pricing. Still, most market insiders note that, while speculation around cheap imports persists, actual bookings are mainly limited to large buyers such as tube mills and re-rollers, while smaller traders remain cautious, considering import deals too risky to manage.
Specifically, most local HRC prices from mills in northern Europe, for August-September deliveries, have been estimated at €550-560/mt ex-works, down by €10/mt week on week, while tradable prices in northern Europe have also declined further this week, by around €20/mt on the lower end of the range week on week to €530-550/mt ex-works. Besides, some sources have already reported even lower prices at €525/mt ex-works. “Some major European mills were reported to be offering HRC at highly competitive prices, granting significant discounts on large-volume orders to fill gaps in their order books,” a market insider told SteelOrbis.
Meanwhile, in Italy, most market sources agree that there are "no official prices" in the domestic HRC market, which remains unclear. Some have reported definite lows around €510–520/mt ex-works, while others mention offers at €530–540/mt ex-works, particularly when buyers require a specification from a specific mill. Thus, offers for HRC in Italy have dropped by around €10-20/mt week on week. “European domestic prices, especially in the south, are on track to hit €500/mt base - it's only a matter of time. Some expect even lower than this level,” another source said.
In the meantime, most offers for import HRC in southern Europe have been voiced at €450-500/mt CFR, depending on the supplier, compared to €460-520/mt CFR last week. According to sources, around 70,000 mt of ex-Indonesia HRC have been booked at €450/mt CFR Italy, down by €10/mt week on week. Besides, another deal for ex-Indonesia HRC was reportedly signed at around €470-475/mt CFR Antwerp last week. Meanwhile, according to sources, bids from Italian customers for ex-Indonesia material have been reported at €430/mt CFR level, down by €10/mt week on week.
Besides, following a deal for around 10,000 mt of ex-India HRC signed at $600/mt CFR Antwerp last week, a few additional deals totalling approximately 20,000 mt are reported to have been concluded this week at $580–600/mt CFR for both southern Europe and Antwerp. This equates to roughly €495–510/mt CFR, with most volumes directed to northern Europe.
Meanwhile, offers for ex-Turkey HRC have varied depending on the source, with most offers quoted at €480-500/mt CFR, duty included, versus €500-520/mt CFR last week.
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