In the EU, flat steel trade has as expected been quiet this week as many market players are already on holiday and the next two weeks will see hardly any trading activity. Meanwhile, upward price expectations prevail in the European market despite slow business. The main reasons are the limited quota volumes according to the latest announcement of the EU authorities, while the significant import HRC bookings done in July have eased the pressure on buyers to restock for the fourth quarter. In the domestic market, the latest deals before the holidays were closed at slightly higher levels than two weeks back, though for small volumes. The market is expected to be back in the last week of August and mills are foreseen to be quite bullish in their offers. “For the next two weeks everyone is off, but prices will increase for sure. I feel they are waiting for September to move up,” a trader told SteelOrbis. Moreover, specifically in the CRC segment, the local price trend will be supported by the recently released AD decision against material of several origins.
In the southern part of the EU, offers for HRC are rare since many suppliers are already absent, but the indications are close to €720-730/mt ex-works in Italy and Spain as per realistic levels, while offers are at around €740-750/mt ex-works. In the HRS market, according to sources, offers have stood at €810/mt delivered, while some service centers are aiming at €840-850/mt delivered, sources told SteelOrbis. In the northern part of the EU, the official prices for HRC are at €750-770/mt ex-works/delivered, while the latest workable levels have been reported at €715-725/mt ex-works. In central Europe, local HRC prices have been set at €740-750/mt CPT, with the latest deals closed at €730-740/mt CPT, SteelOrbis has learned.
Import HRC activity has been really slow lately, following the earlier reported heavy bookings mainly closed to Italy and Spain. According to sources, in Spain, the DDP offers from Japan stood at €745/mt, with small sales closed at €710-720/mt, while Vietnam went down to €720/mt from the official offers of €750/mt, but it seems not to have succeeded in concluding sales this time. Import materials have been offered at €720/mt CPT to central Europe. In addition, according to sources, around 20,000 mt have been sold to Macedonia at $589/mt CFR or around $570/mt FOB Turkey.
In the CRC and coated markets in the EU, prices have been mainly stable at €835-850/mt ex-works and at around €840-850/mt delivered in central Europe, sources reported. The recently announced AD rates for CRC of several origins are expected to push local prices in the EU up further. “Taiwan, Vietnam and Japan are doomed [as they received the highest rates]. Prices are going to increase,” a trader told SteelOrbis.
