As expected, the price downtrend in the EU HRC market has not yet come to a halt within the past week, as trading activity has remained muted amid low end-user demand and expectations of further price declines in the coming period. In this situation, mills are considering cutting their outputs, and a few of them may have already done so, sources commented. Expectations remain bearish.
SteelOrbis has assessed achievable base prices as standing at €890-920/mt in Italy and €950-970/mt in northern Europe, both ex-works. Accordingly, the general range in the EU market is currently at €890-970/mt ex-works, compared to the levels of €920-1,000/mt ex-works reported on June 3.
Meanwhile, import offers have continued to add some pressure to the local EU market, although the interest in import material has remained weak. An ex-Turkey HRC offer was heard at €830/mt CFR, duty paid, which is the same level as in a booking reported to Italy last week. Furthermore, a trading source told SteelOrbis that Romania-based Liberty Galati has offered HRC at €860/mt delivered to northern Italy.