Uncertainty surrounding euro complicates traders’ flats offers to Europe

The downward movement of the euro against the US dollar has continued this week. The €/$ exchange rate, which was at 1.30 early last week, has today declined to 1.22. With this decrease, there have been price corrections on dollar basis in the European flats markets. European mills' prices have remained unchanged on euro basis, but have softened by about $40-50/mt due to the weakness of the euro.
 
In the southern European flats markets, HRC prices are standing at €620/mt, while mills are open to negotiation. Prices in the northern European flats markets are at higher levels as compared to southern Europe. In Germany, hot rolled product prices are at €650/mt, while cold rolled products are at €730/mt. In Poland, HRC and CRC prices are at the levels of €620/mt and €710/mt respectively. In northern Europe, end-user demand has indicated a softening. In central Europe, prices of flats producers in Hungary and Serbia are standing at average levels of €600/mt for HRC and €700/mt for CRC.
 
On the import side, although European buyers show no interest for now, position offers for HRC are generally standing about €570/mt CFR. Russian mill MMK's HRC offers for its June production are at €600/mt for delivery to Europe. Egyptian mill EZDK's offers to Europe for its August production are at $790/mt FOB, while the producer is heard to be willing to accept firm bids. Traders' offers on dollar basis have seen a slowdown in purchases due to the weakness of the euro.