The European hot rolled roll (HRC) market remained virtually unchanged this week, while domestic prices in both Northern Europe and Italy remained stable.
Steel producers continue to offer prices of about 30 euros per tonne above the level that buyers consider acceptable, highlighting the continuing gap between asking prices and transaction prices. Import activity remained subdued as uncertainty related to CBAM commitments and quota restrictions forced buyers to exercise caution.
In particular, local plants in Northern Europe are reportedly targeting new orders for October and November at 600-630 euros per tonne, mostly the same as last week, while offers from Italian plants for October delivery remain at 570-580 euros per tonne. However, the traded price level remained at 570-580 euros per tonne from the plant in the north and 540-550 euros per tonne from the plant in Italy, and no major transactions were reported this week.
Meanwhile, the import market remains weak due to uncertainty about CBAM regulations, and the limited availability of quotas is curbing consumer appetites. Industry participants reported that most buyers prefer to postpone orders until the prospects become clearer. It was reported that the estimated offers for imported HRC range from 500-540 euros per ton CFR, depending on origin, which is 15 euros per ton higher than at the bottom of the range week after week.
The lower part of the range corresponds to the HRC offers from Indonesia to southern Europe, which were announced at 500-510 euros per ton CFR, compared with transaction prices at 485 euros per ton CFR last week and offers at 490 euros per ton CFR. Meanwhile, the higher price corresponds to the offers for HRC from Turkey at a price of 520-540 euros per ton CFR, including duties, as in the previous week. However, sources indicated that deals with HRC from Turkey are unlikely in the near term, as Turkey has already exhausted its quota for importing HRC from the EU for the third quarter.
The HRC offers from India remained at US$ 610 per ton CFR, which is about 515 euros per ton.tons for delivery in November, although some sources also reported higher HRC offers from India at a price of 520-530 euros per ton CFR.
$1 = €0.85
Steelorbis.com
