Tradable HRC prices drop further in Europe, buyers still in wait-and-see mode

Business activity in the European hot rolled coil (HRC) market has remained weak lately. Producers have still been having problems filling their order books, with many of them, especially in northern Europe, still offering HRC for November delivery. Meanwhile, trade has also been slow in southern Europe given overstocking and low demand. At the same time, although foreign HRC suppliers have been providing discounts to European buyers, most of them have failed to conclude new sales.

Official HRC offers from local European producers have been voiced at €770-780/mt ex-works, down by €10-40/mt week on week. However, a more realistic and achievable level from both northern and southern mills is estimated at €740-760/mt ex-works, compared to €750-770/mt ex-works last week. “We heard a few deals were confirmed in northern Europe at €740/mt ex-works, though most distributors are aiming for €720-730/mt ex-works,” a market insider said.

As for import HRC prices, offers to southern Europe have dropped to around €670-730/mt CFR, depending on the origin, down by €10/mt week on week. The lower end of the range corresponds to ex-Japan offers to Italy at €670/mt CFR, compared to €680-690/mt CFR last week, while ex-Japan offers to Spain have been heard at €680-690/mt CFR, down by €10-15/mt over the past week. Meanwhile, other Asian suppliers, like those from Taiwan, Indonesia and Vietnam, have been offering their materials at €670-680/mt CFR southern Europe, down by €10-20/mt week on week.

Furthermore, offers for ex-India boron-added coils have been voiced in Italy at around €690/mt CFR, compared to €700/mt CFR last week. However, according to market insiders, offers from India have been limited in Italy this week and absent in Spain. Meanwhile, ex-Turkey HRC offers have been voiced at €700-720/mt CFR southern Europe, including duty, compared to €720/mt CFR last week. Offers from Egypt have been reported at €705/mt CFR, compared to €730-740/mt CFR last week.

“We are hearing very few negotiations and for very low volumes, and we doubt there will be any trade recovery in the short run considering excess stocks,” a market insider told SteelOrbis.

Import HRC offers, CFR southern Europe