HRC manufacturers in the EU are struggling to meet orders for the fourth quarter; buyers are cautious, keeping stocks high
Prices for hot-rolled products in Europe remained largely unchanged on Tuesday, September 30, as suppliers faced difficulties filling their order portfolios for the fourth quarter amid declining demand. Sources told Fastmarkets that a proposal for new steel trade measures is expected in early October to replace existing guarantees.
In November-December, the supply of HRC was offered at a price of 590-610 euros per ton from integrated mills plants in Northern Europe. But the sources noted that local suppliers did not actively offer higher prices for supplies in the fourth quarter
"[HRC]at the moment, the table contains offers in the amount of 600 euros[per tonne ex-works]and above. Buyers do not accept," steel is a service center in the region.
"Buyers still have sufficient inventory – they ordered another coil inside and outside the country in the third quarter amid bullish sentiment and CBAM/warranty issues," the source told Stan.
The European Commission is expected to publish a bill on new trade measures to replace existing guarantees on October 7, so according to a pre-determined schedule, several sources familiar with the situation told Fastmarkets.
Achievable prices were reported to buyers in Germany and the Benelux at €570-580 per ton of Ex-work.
One German buyer said that for large volumes[5,000 tons and above], it would be possible to negotiate prices below €570 per ton of ex-work, "but no one wanted to buy a large batch[of HRC]."
"Factories have empty orders for December, while buyers don't need tons of that," the German buyer said.
Fastmarkets’ calculation of daily hot-rolled steel coil index, domestic, pickup of Northern European Euro 577.50 per ton on Tuesday, down by €0.42 per ton from €577.92 per ton on Monday, September 29.
The Nordic index declined by €1.25 per tonne week-on-week and down by €0.83 per tonne compared to the previous month.
The Fastmarkets index of daily steel HRC, home, EXW Italy conditions is calculated at €550,00 € per ton on ex-factory terms on Tuesday, decreased by €0.63 per ton from €550,63 per ton on Monday.
The Italian index rose by €1.25 per tonne week-on-week and by €8.33 per tonne compared to the previous month.
Both for the Italian market and for local participants, the possible prices for the CCP in the country are estimated at €540-550 per ton of Ex-work. One source claimed that for the production of large-tonnage products, the factories were ready to reduce the price to 530 euros per ton from the factory.
Official offers were estimated at about 570 euros per ton from the plant, but no sales were reported at that level.
In general, sources expressed doubts about the possibility of an upward trend in the coming weeks.
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