Domestic HRC prices in Northern Europe are declining amid weak demand; the Italian market is growing amid the latest offers
Prices for domestic hot-rolled steel (HRC) have declined slightly amid low market activity in Northern Europe, while prices in Italy have increased due to the latest offers, Fastmarkets sources said on Wednesday, June 10.
. In Northern Europe, a buyer source said on Wednesday the August-September supply price was 680 euros ($786) per tonne from the factory and the offer was 750 euros per tonne from the factory.
The offer was presented in zero tonnage due to the fact that its delivery time exceeded the six-week period set by the Fastmarkets methodology.
Another customer source said that for July orders, levels of 670-685 euros per ton from the factory, supply of 700-705 euros per ton from the factory and higher prices of 720-750 euros per ton from the factory are expected. Higher offers were presented in zero tonnage due to the lack of buyer interest in this level.
Sources said that consumption was "not very good," while weak demand continued to put pressure on market sentiment.
The daily price index for Fastmarkets hot-rolled steel in the domestic market, exw in Northern Europe, as of June 10 was 686.67 euros (792.95 US dollars) per ton, which is 1.83 euros lower than 688.50 euros per ton on June 9.
The indicator decreased by 3.33 euros per ton week-on-week and by 2.91 euros per ton on a monthly basis.
In Italy, HRC's offers were priced at 680-695 euros per tonne from the factory, while on Wednesday prices ranged from 665-685 euros per tonne from the factory.
A source at one of the plants also reported a lower price of 670 euros per ton (655 euros per ton from the plant), but other sources said this was probably due to raw material reserves, and one source said this level was not possible for primary production.
The daily price index for Fastmarkets hot-rolled steel, domestic, exw in Italy, was calculated on Tuesday at 685.00 euros per ton, up 3.12 euros from 681.88 euros per ton on Monday.
The indicator increased by 12.25 euros per ton week-on-week, but decreased by 1.35 euros per ton on a monthly basis.
Author: Ivelina Nikolova
Fastmarkets.com