Trading activity in the Spanish HRC market has remained limited this week, with buyers mostly signing occasional bookings for immediate consumption, mainly due to the still high prices and problems with credit lines in Europe. Besides, most market insiders have long-term steel consumption concerns because the automotive industry is affected by the global shortage of semiconductors and other components. Thus, even despite a sharp drop in import HRC prices, Spanish buyers have continued to maintain a wait-and-see attitude.
Accordingly, this week most HRC suppliers have decided to decrease their offers for Spanish importers. More specifically, ex-Japan HRC offers have fallen by €30-40/mt over the past week to around €1,190-1,200/mt CFR Spain, while offers from South Korea and Taiwan have dropped to around €1,180-1,190/mt CFR, down by €50-60/mt week on week. Suppliers from India have been offering at around €1,170-1,180/mt CFR, down by €40-50/mt over the past week. “The last deal for Indian materials we heard was signed at $1,287/mt CFR (around €1,184/mt) last week, but now new offers are much lower,” a Spain-based trader told SteelOrbis. Offers from Vietnam have been reported at around €1,150/mt CFR Spain, and, according to market insiders, a deal has been signed at this level this week. Meanwhile Turkey’s HRC offers are higher than the average, being at €1,270-1,290/mt CFR, duty paid, down €10-30/mt over the past week. Suppliers from China have been offering at around €1,120/mt CFR Spain, down €70-80/mt week on week.
Meanwhile, local HRC prices in southern Europe, including Spain, have been voiced at around €1,350/mt ex-works, “but there are rumors about transactions at around €1,300/mt ex-works and below”, a market insider stated.
“HRC customers in Spain cannot support these still high prices as consumption is coming down and we are not hearing too many bookings,” another Spanish trader said.
