Although most offers from European HRC mills have remined relatively stable this week, import prices have finally stopped falling sharply, with some offers heard at even higher levels, Nevertheless, the general market mood is still far from optimistic given the lack of business activity and persisting bids voiced at lower levels domestically.
More specifically, HRC offers prices in the EU have settled at €650-710/mt ex-works, versus €650-720/mt ex-works last week, with the lower end of the range corresponding to the tradable level for HRC in Italy, the same as last week, while mills’ official offers have been heard at stable levels of €660-670/mt ex-works. According to sources, talk about lower offers from one of the Italian mills at €630-640/mt ex-works has been circulating in the market, though this information has not been confirmed by any mills and is considered as “more speculation”. “USS Kosice is selling HRC to Italy and Germany at €650/mt ex-works, but we are not hearing lower levels,” an Italian trader said.
At the same time, HRC offers in northern Europe have been reported at €700-710/mt ex-works, down by €10-20/mt week on week, while the tradable level has remained at €700/mt ex-works. “We’ve heard a rumour of a softening under €700 in northern Europe, but have not seen any clear evidence yet,” an international trader told SteelOrbis.
Meanwhile, import HRC offers to southern Europe have remained mainly unchanged, standing at €580-605/mt CFR, though several offers have been reported higher at around €620/mt CFR in Spain. The lower end of the range corresponds to ex-Vietnam offers at €580-590/mt CFR Italy, though there was talk about an offer from Vietnamese-based Hoa Phat at $620/mt CFR, or €572/mt CFR Italy. Meanwhile, offers from India and Taiwan have remined at €590/mt CFR Italy. However, according to a Spanish buyer, a deal for ex-Japan HRC has been reported at €620/mt CFR this week.
Furthermore, import offers for ex-Asia HRC in northern Europe have been heard at €600-620/mt CFR, up by €10/mt on the higher end of the range week on week.
$1 = €0.92