High inventories and uncertainty regarding guarantees are keeping the European HRC steel market calm
The domestic hot-rolled rolled steel (HRC) market in Europe remained calm on Tuesday, June 9, as buyers delayed new deals due to high inventories and uncertainty about the details of upcoming new protective regulations, especially regarding country-specific quotas.
In such conditions, the indicators of acceptable prices for trade in Northern Europe were noticeably lower compared to the target indicators of the plants. Both buyers and sellers stated that reasonable prices were significantly lower than 700-730 euros (807-842 dollars) per ton from the factory, which the enterprises were counting on, and ranged from 670-685 euros per ton from the factory, but no major sales were heard during the day.
"The price pressure is mainly due to market saturation, as both traders and service centers have raised prices in anticipation of this year's challenges," said one of the sources associated with the buyers.
The daily price index for Fastmarkets hot-rolled steel for domestic consumption in Northern Europe (exw) as of June 9 was 688.50 euros (795.59 US dollars) per ton, which is 3.50 euros lower than 692.00 euros per ton on June 8.
The index rose by 1.00 euros per tonne week-on-week, but decreased by 1.08 euros per tonne month-on-month.
The Italian securities market was also quiet, with no major transactions heard during the day.
The most recent offers were reported at 700-710 euros per tonne delivered (685-695 euros per tonne from the factory), while real prices were estimated at 665-680 euros per tonne from the factory.
The daily price index for Fastmarkets hot-rolled steel for domestic consumption (exw, Italy) on Tuesday was 681.88 euros per ton, up 1.05 euros from 680.83 euros per ton on Monday.
The indicator increased by 4.38 euros per ton week-on-week, but decreased by 4.47 euros per ton on a monthly basis.
"Deals are so rare that it's really difficult to report a price that I would consider stable overall," said a buyer source. "Everyone is waiting for the price increase as soon as the precautions take effect. Depending on the products,[price changes]are expected between mid-July and early August."
It was reported that import shipments were mostly suspended as there were rumors about the cancellation of some recent deals with Indonesian HRCs.
Author: Vlada Novokreschenova
Fastmarkets.com