Although European producers have been trying to keep their offers stable at high levels, the tradable level has been trending down in the EU, as transaction activities have remained scarce amid weak demand, while distributors have kept reducing their stocks anticipating a further drop in prices. At the same time, some foreign suppliers, especially those from Asia, have decreased their HRC offers for European customers as well, though trade has remained on pause as European buyers are expecting more clarity regarding the import volumes which are expected to arrive in October.
Accordingly, the general range in the EU HRC market is currently at €620-650/mt ex-works, compared to €630-660/mt ex-works last week. More specifically, the tradable level estimated in southern Europe has moved to €620-630/mt ex-works, down by €10-20/mt week on week, while most Italian mills have mainly been refraining from firm offers due to weak market conditions. At the same time, in northern Europe, official offers from mills are still heard at €660/mt and even at €680/mt ex-works, which considered to be “too high to be workable”, while achievable levels have decreased to €630-650/mt ex-works for October and November deliveries.
Meanwhile, import trade has been close to zero this week, despite some weakening in import HRC offers. In particular, import prices for HRC have dropped to €610-635/mt CFR, versus €620-650/mt CFR last week. Offers for ex-Taiwan HRC have been heard at €610/mt CFR, down by €20/mt week on week, while suppliers from India, South Korea and Japan have decreased their offers to around €620/mt CFR Spain, down by €10-20/mt week on week.
Besides, offers for ex-Egypt HRC have been voiced at €630-635/mt CFR, though, according to some sources, higher ex-Egypt HRC prices have been heard at €670/mt CFR Spain, which considered to be overpriced. Offers from Turkey have been heard at €670-690/mt CFR, depending on the supplier, including duty, but, according to market insiders, no deals are possible at this level, given European customers’ bids at €600-605/mt CFR levels. “Bids are at around €600/mt CFR, but even at that level there is very low interest,” a Spanish trader told SteelOrbis.
“Everyone expects some revival in import purchases but not before October when customs clearance for import HRC for the new quota period will start. Buyers in Europe are also not interested in new bookings as some suppliers are already offering HRC for January delivery,” a market insider told SteelOrbis.
