European HRC steel prices stable; weak demand, high inventories limit bullish sentiment
Prices for hot-rolled steel products in Europe remained virtually unchanged on Tuesday, April 21. High inventories and low demand have held back trading, and buyers have so far refused to accept the significantly higher prices of the July offer, Fastmarkets reported.
In Northern Europe, integrated steel mills had very few rolls left for delivery in June, and buyers estimated that reasonable prices for this material were 700-710 euros (823-835 dollars) per ton.
It was reported that two German factories did not have a feed coil available in the second quarter.
It became known that one German supplier, who had previously announced offers for delivery in July at a price of 750-760 euros per ton of finished products (about 735-745 euros per ton from the factory), offered some customers such material at a price of 730 euros per ton of finished products (715 euros per ton from the factory). in Germany.
"The offers[of July-delivery HRC]at a price of 750 euros[per tonne delivered]and above that we have heard are unrealistic," the Steel Service Center (SSC) in Germany said. "Inventory levels are high, new imported goods are still arriving,[and]there is no shortage of materials. The big changes will start after July 1, but even then we don't have the opportunity for a sharp[HRC]price spike."
There were technical problems at the plant in the Benelux region, due to which there was no supplied coil in the second quarter.
In addition, several sources told Fastmarkets that sales of discounted rolls for June delivery, which were reported at a major European factory in mid-April, were no longer taking place, and factories were trying to maintain trading levels above 700 euros per ton at the plant.
However, trading on the spot market was limited.
Market sources expected more clarity on the distribution of steel import quotas between countries starting on July 1, when the new trade regime will come into force.
Fastmarkets' daily hot-rolled steel roll price index for domestic consumption in Northern Europe was 708.00 euros per tonne on Tuesday, up 0.50 euros per tonne from 707.50 euros per tonne on April 20.
The indicator decreased by 11.17 euros per ton week-on-week and by 2.00 euros per ton month-on-month.
At the same time, in Southern Europe, Fastmarkets' daily hot-rolled steel roll price index for domestic consumption, exw Italy, was calculated at 700.00 euros per ton from the factory on April 21, stable from day to day.
The indicator increased by 1.25 euros per ton week-on-week and 4.37 euros per ton month-on-month.
On Tuesday, market sources in Italy estimated achievable prices for HRC at about 700 euros per ton from the factory.
Local sellers have retained offers of at least 700 euros per ton from the factory upon delivery.