European HRC prices rose slightly; weak demand keeps the market subdued
European prices for hot-rolled steel rose slightly on Monday, June 8, but market activity remained low in both Northern Europe and Italy, and sentiment was subdued by upcoming protective measures that will take effect on July 1, Fastmarkets sources said.
Sources in Northern Europe reported that weak demand, insufficient competition and low consumption continue to put pressure on market sentiment.
One buyer reported an offer of 700-705 euros (806-812 dollars) per ton from the factory, while on Monday reasonable prices were indicated at 680-685 euros per ton from the factory.
A second customer-related source reported achievable prices of 660-680 euros per tonne for delivery from the plant in July-August, which were calculated at zero tonnage due to a lack of interest in selling at this level.
No significant trades were reported during the day.
"Everyone is waiting[for the allocation of quotas for a specific country under the new import program], so activity will increase from July 1," a source from among the first buyers told Fastmarkets, adding that current demand is "quite low."
The new protective measures include reducing quotas on steel imports to the EU and increasing off-quota duties aimed at protecting the local steel industry from global overcapacity and unfair trade practices.
The supply of 700 euros per ton from the plant and the figures of 670-700 euros per ton from the plant, which were reported on Friday, June 5, were postponed to Monday's index due to the lack of fresh data from market participants.
Fastmarkets' daily hot-rolled steel roll price index for sale in Northern Europe (exw) was 692.00 euros (796.99 USD) per ton on Monday, up 0.33 euros from 691.67 euros per ton on Friday.
The indicator increased by 2.00 euros per ton week-on-week and by 2.42 euros per ton on a monthly basis.
In Italy, one of the buyer sources announced a new offer for HRC at a price of 700-710 euros per tonne delivered (685-695 euros per tonne from the factory), announced on Monday morning.or the achievable prices were announced at the level of 665-680 euros per ton from the plant, which corresponds to the latest deals reported on Friday.
"As a rule, very little happens due to the wait-and-see attitude associated with the lack of information about new protective measures," the buyer said.
The second buyer reported that the offers were priced at 655-670 euros per ton for delivery at the end of August, while the tonnage was zero due to a longer delivery period, which exceeds the period set by Fastmarkets and is up to six weeks.
[There is still real demand