Domestic HRC prices in Europe continued to decline this week as weak demand and bearish sentiment continue to put pressure on the market. Most buyers refrain from making new purchases, citing sufficient inventory levels and expectations of further price reductions. As a result, trading activity remains subdued, and a cautious and defensive mood prevails in the market. At the same time, the volume of import purchases remains limited and mainly focuses on materials subject to customs clearance before October 1, after which it is expected to suspend operations.
In particular, most of the local prices for HRC from factories in Northern Europe, mainly for July deliveries, were announced at the level of 600-620 euros./As in the previous week, selling prices in Northern Europe continued to decline this week by about 10 euros per tonne, reaching the level of 590 euros per tonne. "The HRC market is expected to face further downward pressure in the summer, and, according to some estimates, in the short term, an acceptable price in the north will be 570 euros per ton. Buyers expect a slight increase in prices only by the end of summer or in the next quarter," a source familiar with the market situation told SteelOrbis.
Meanwhile, in Italy, most offers from factories decreased to 570-590 euros per ton from 580-600 euros per ton last week. At the same time, real prices also declined, dropping to the level of 550-555 euros per ton from the factory, which is at least 20 euros per ton per week. According to sources, buyers are still cautious, and some speculative transactions reach up to 535 euros per ton, although this still does not correspond to the real market level. However, sentiment indicates that HRC prices have not bottomed, which leaves room for further declines.
Meanwhile, import bidding activity in Southern Europe remained low this week, and most of the import proposals for HRC in Southern Europe were announced at a price of 470-530 euros per ton CFR, depending on the supplier, compared with 490-540 euros per ton CFR last week. It was reported that prices for HRC from one of the Indonesian plants are in the lower part of the range, or about 470-490 euros per ton CFR, compared with 490 euros per ton CFR last week. However, according to sources, "the market is not ready to buy from them and uses this price to negotiate with others."
In addition, offers from India were reported at a price of $600 per ton CFR in Southern Europe, which is about €520 per ton CFR, which is 5-10 euros per ton week after week. "Buyers are pushing for lower prices, or about $590 per ton CFR," a market insider told SteelOrbis. At the same time, a deal was signed for the supply of HRC from India at a price of 610 US dollars per ton of CFR, or about 530 euros.
