European HRC prices are stable; weak demand and high inventories limit profits
On Tuesday, April 14, prices for hot-rolled coils in Europe remained virtually unchanged. It became known about some deals with the supply of rolls at low prices in the second quarter, although most suppliers reported better deals for the third quarter, Fastmarkets reported.
Trading on the European HRC market remained weak on Tuesday. Sources said that inventory levels throughout the supply chain were quite high, which also held back the growth of HRC prices.
In Germany, deals were concluded at a price of 710-720 euros per ton at factories for small-tonnage deals from one supplier - for the remaining June supply of HRC.
It was reported that German factories had mostly sold out of stocks for supply in the second quarter, and in July, a price of about 750 euros per ton from the manufacturer was reported, which buyers considered unacceptable.
One of integrated mills' plants in the Benelux region reportedly had technical problems and did not have finished products for delivery in June. The proposed price for July was 750 euros per ton from the factory.
Earlier this week, reasonable prices were announced at the level of 700-720 euros per ton from the factory.
As a result, on April 14, the daily price index for Fastmarkets hot-rolled steel for sale in Northern Europe was 719.17 euros per ton, down slightly from 720.00 euros per ton on Monday, April 13.
The indicator also increased by 0.92 euros per ton week-on-week and by 5.60 euros per ton month-on-month.
After the index was published, several sources reported on a large-tonnage deal (about 25,000 tons) concluded by one of the largest exporters at a price of 680 euros per ton.
. European factories in the Benelux region increased shipments in the second quarter.
Sources reported difficulties in transferring higher HRC prices for processing amid low consumption.
For example, a 4 mm thick HR sheet of the s235 brand was still sold in a warehouse in Germany at a price of 770-780 euros per ton, while sources estimated an "adequate" difference between the HRC and the HR sheet at at least 100-120 euros. Some sources, however, reported that in rare cases the price of CPT reached 800 euros per ton.
"The secondary market is not keeping up with the pace of price growth for HRC. There are still a lot of cheap imports on the market," said a German buyer.
At the same time, in Southern Europe, the daily price index for Fastmarkets hot-rolled steel in the domestic market, exw in Italy, calculated on April 14 at 698.75 euros per ton from the factory, rose by 1.11 euros per ton from 697.64 euros per ton on Monday.
.The indicator increased by 0.25 euros per ton week-on-week and by 6.25 euros per ton month-on-month.
According to Italian sources, achievable prices for HRC from the factory will be around 690-700 euros per ton.
Trading