The mood in the European hot-rolled steel market remained negative on Monday, June 16, with trade sources reporting a lack of real demand, and the upcoming holidays and expectations of a further downward correction in prices were cited as the main reasons for insufficient inventory replenishment activity.
According to Fastmarkets calculations, the daily HRC index for domestic steel exported to Northern Europe stood at 593.75 euros ($687.54) per tonne on June 16, down slightly by 0.25 euros per tonne from 595.00 euros per tonne last Friday.
A number of market sources reported that materials were available in the region at prices in the range of 590-600 euros per ton from the factory, but reasonable prices were estimated at the lower end of the range.
Nevertheless, the bids still included prices in the amount of 550-570 euros per ton, or the buyers were wishful thinking."
There were also rumors that one of the largest producers in the region was selling cargo at a price of 550 euros per ton from the factory, but this had not been confirmed at the time of publication.
The daily HRC index for Fastmarkets steel, domestic, exw Italy, was 580.83 euros per ton on Monday, up by just 0.83 euros per ton from the previous day.
Reasonable prices for materials from an integrated supplier ranged from 580-585 euros per ton in stock. According to market participants, the plant was not ready to cut prices due to limited supplies from another manufacturer, although the distributor was ready to make small price concessions.
Nevertheless, trading activity in the southern country remained low, and prices were expected to show negative dynamics.
"End users and stockbrokers are very afraid that prices may fall even more, so everyone is trying to get rid of their stocks before the start of the holidays," a stock exchange source told Fastmarkets on June 16.
Another source on the stock exchange reported on Indonesia's offers-at the beginning of this week, rolls from Indonesia were sold at a price of 480 euros per ton, compared with 490-500 euros per ton at the end of last week.
In Northern Europe, Indonesian rolls were sold at a price of 530-540 euros per ton, and there were reports that Indian material was being offered at a price of up to 520 euros per ton.
Vlada Novokreschenova
Fastmarkets.com
