European HRC prices are falling in Northern Europe amid weak demand; in Italy they are stable due to the summer recession
Domestic prices for hot-rolled steel (HRC) in Northern Europe declined slightly on Tuesday, July 21, but trading activity in the region was low, Fastmarkets sources said. Prices in Italy remained stable, with market participants citing weak market sentiment due to the approaching summer holidays.
In Northern Europe, the buyer reported a possible supply level of 700-710 euros (800-811 dollars) per tonne from the plant and an offer of 730-740 euros per tonne from the plant for delivery in the fourth quarter. A better offer was rejected due to a lack of interest in buying at this level and a longer delivery time.
However, the second buyer stated that he did not believe that the price of 700 euros per ton from the factory had "already been achieved in reality," but could not indicate at what level it was possible to trade. "The summer holidays[are making themselves felt], plus we need to settle the customs clearance issues first," the same source added.
Due to the lack of fresh data from market participants, the price data collected on July 20 was transferred to the Index for Tuesday, in accordance with the Fastmarkets methodology.
On Monday, a source from among the buyers announced offers at a price of 720-725 euros per ton from the plant. The supplier reported deals priced at 705 euros per tonne from the factory on the same day, while the offer reached 730 euros per tonne from the factory. The higher level of supply was not taken into account in the index due to the lack of customer interest.
In addition, all the price points on the buyer's side included in Tuesday's index were copied to the selling side.
Market activity was low on July 21, as trade sources cited weak demand during the upcoming summer holidays.
Fastmarkets' daily hot-rolled steel roll price index in the domestic market, exw in Northern Europe, calculated on July 21 at 712.29 euros per ton, decreased by 1.46 euros per ton from 713.75 euros per ton in July 20.
The indicator increased by 2.29 euros per ton week-on-week and by 26.03 euros per ton on a monthly basis.
In Italy, a trade source said a major supplier had struck a deal for 700-710 euros per tonne for September delivery, adding that they expected "a big step to be taken in September after the[summer]holidays."
Another trader reported possible levels of 710-720 euros per ton from the factory. However, no transactions were registered in this range, while trading activity remained limited amid weak market sentiment. As a result, the price did not gain enough value to affect Tuesday's index.
On July 20, the seller announced a deal at a price of 700 euros per ton from the plant, which was moved to Tuesday's index in accordance with the methodology.