Although European producers have managed to maintain their offers at relatively stable levels as compared to last week, tradable prices have been trending down in the EU, as transactions activities have remained scarce amid weak demand, while most buyers have been refraining from new purchases, anticipating a further drop in prices. Import offers have remained relatively stable over the past week but with some downward bias in several ex-Asia offers, while trade has remained extremely limited due to long lead times and the safeguard quota issue.
Accordingly, the general range from mills in the EU HRC market is currently at €730-760/mt ex-works, the same as last week, with offers from Italian mills heard at around $730-735/mt ex-works, while producers in the north have been offering their materials at €740-760/mt ex-works, both for April delivery.
However, the tradable level in Italy has dropped to as low as €720-725/mt ex-works in new deals this week, down by €5-10/mt week on week, with buyers have already been bidding at €715-720/mt levels, while talk about another fall down to €700/mt ex-works has been actively circulating in the market. Furthermore, workable prices in northern Europe have been estimated at €720-730/mt ex-works, against €740-750/mt ex-works last week, while ex-Italy offers at €740/mt delivered have not been accepted by Germany customers.
In the meantime, import offers for ex-Asia HRC for delivery already almost in June, have been voiced at €620-660/mt CFR, down by €10/mt week on week. In particular, offers for ex-Vietnam HRC have been heard at €620/mt CFR southern Europe, and some even at €615/mt CFR, down by €10-15/mt week on week, while the same material has been offered by traders at €645/mt CFR Spain, for 90-day deferred payment. Besides, offers from Japan have been heard at €630/mt CFR, with a few deals reported to have been done in Spain at the end of last week and beginning of this week at the abovementioned level. Suppliers from Taiwan have decreased their prices to €620-630/mt CFR, down by €10-20/mt over the past week. Offers for ex-India HRC have been heard at €655-660/mt CFR directly from mills, mainly the same as last week, while offers from South Korea are still reported at €650/mt CFR.
Offers for ex-Turkey HRC have been estimated at around €670-690/mt CFR, duty paid, against €700/mt CFR last week, though no new deals have been heard so far.
