European hot rolled steel prices continued to fall on Thursday, June 26, with sources saying that lack of demand, seasonal factors, declining iron ore prices, and competing import supply were key factors weighing on the market.
Fastmarkets calculation daily roll hot-rolled domestic index, pickup of Northern European Euro 566.25 ($658.22) per ton on June 26, decreased by €7.5 hours per ton from €573.75 per ton on Wednesday, June 25.
Rational levels were indicated in a wide range of €550-570 per ton of Ex-work compared to €560-580 per ton a day earlier, with one seller saying that €580 per ton of EXW and more was not achievable.
The source added that the negative dynamics affecting iron ore prices helped Mills maintain profits a little, while earlier this week sources reported that the price level was approaching the shoreline.
Fastmarkets' daily iron ore index of 62% Fe fines, based on Qingdao CFR terms, was $92.32 per tonne on June 26, up from $97.27 per tonne on May 26.
In Italy, the HRC market also continues to show signs of weakness.
"In 20 years, until 2028 and Covid, I have never seen such weak demand," a local market source said.
Although no sales were recorded throughout the day, workable prices ranged from €530-550 per ton of ex-work depending on tonnage.
Small-sized, currently tonnage is available at €540 per ton and above, and decent volumes can be traded in the range of €530-540 per ton on a free-of-charge basis, according to sources.
Fastmarkets daily hot-rolled steel coil index domestic, EXW in Italy was calculated at €540.63 per tonne on June 26, down by €6.03 per tonne day to day.
Starting from August, the HRC offers transportation from Indonesia for €470-480 per ton of Ex-work.
HRC from Turkey at €525-530 per ton CFR duties for low—tonnage orders, and large volumes — from 20,000 tons and above - were reportedly available for $500-510 per ton, duty paid.
From Vietnam and Thailand, the HRC offers euros 510-515 per ton CFR in Italy.
Vlada Novokreshchenova
Fastmarkets.com
