In the southern European flat steel market, due to the approach of the summer holidays and also the risk of a possible economic depression, demand has decreased as compared to previous weeks, while the market have remained quiet.
In the Italian domestic market, hot rolled coil (HRC) prices stand at €510/mt ($734/mt) ex-works, while import offers given to Italy are higher than local prices. Consequently, Italian buyers prefer to supply their needs from their domestic market. Although Turkish HRC offers to Italy are at $740/mt FOB, since these offers are above €500/mt ($720/mt), they do not attract much attention from buyers.
In Bulgaria, flat steel demand has declined as compared to previous weeks. In the meantime, it is heard that import HRC offers given to Bulgaria, particularly from Ukraine, are at acceptable levels. Ukrainian producers' HRC offers to Bulgaria stand at $720-730/mt CFR. In the meantime, ex-Turkey offers, which have not declined from $730-740/mt FOB, have failed to find acceptance in the Bulgarian market.
In Portugal also, flat steel demand is low and the market is sluggish. HRC prices in the local Portuguese market have remained almost unchanged over the past two weeks at €610/mt ($878/mt) ex-warehouse. In the meantime, SteelOrbis has learned that Portuguese galvanized steel producer Lusosider is offering hot dip galvanized (HDG) coil to its domestic market at the base price level of €600/mt ($864/mt) ex-works.
In Europe, flat steel transactions are scarce ahead of the summer holiday which will continue throughout August. However, demand is expected to revive by mid-September, following the summer holiday in Europe and Ramadan in Turkey, with the market expected to liven up then.