The domestic HRC market in Europe has quieted down as buyers refrain from more expensive materials
Domestic prices for hot-rolled steel coils (HRC) in Northern Europe and Italy remained stable on Friday, July 10. Despite the fact that the factories insisted on raising prices for September delivery, trade was limited. According to Fastmarkets sources, the latest confirmed deals were below the supply level, indicating that buyers are unwilling to accept the proposed price increase.
In Northern Europe, trading took place calmly during the day. Sources reported offers at a price of 730-740 euros ($835-846) per ton for September delivery, but they were generally considered unfeasible in the current market.
A customer source pointed to an achievable level of 700-710 euros per tonne from the factory, saying that the increase to 740 euros per tonne from the factory was "too much". However, the source added that import prices for HRC steel rose rapidly after reduced EU steel import quotas came into force in July.1
The same source said that they had heard offers to import HRC to Northern Europe at a price of 640 euros per ton of CFR, but were unable to receive them. Confirm the origin. On Wednesday, market participants announced the latest offers for the import of raw materials to the region from Egypt at a price of 610 euros per ton CFR.
As a result, Fastmarkets' weekly price estimate for imports of hot-rolled steel coils from CFR's main port in Northern Europe on Wednesday was 530-610 euros per tonne, an increase of 10 euros per tonne from 530-600 euros per tonne a week earlier.
"Buyers don't know what to do because there are still enough materials on the market," a source at local HRC said, adding that buyers would still need to restock for the fourth quarter, but it was unclear whether demand would improve.
A source at the manufacturing company said that the offers at a price of 740 euros per ton from the factory "may be high," but added that they are confident that buyers "will be willing to pay more in September-October."
But on Thursday, the latest September shipment deals were reported at 710 euros per tonne from the plant, and no activity at higher levels has been confirmed so far. As a result, when calculating Friday's index, Fastmarkets did not take into account offers at a price of 730-740 euros per ton from the factory.
Due to the lack of fresh data, the price figures collected on Thursday were moved to Friday's index calculation in accordance with the Fastmarkets methodology.
On Thursday, it was reported that the market value of HRC for September delivery was 700 euros per ton from the manufacturer. During the same period, offers were submitted at a price of 740 euros per ton from the plant, as well as the mentioned deal at a price of 710 euros per ton from the plant, but the offer was zero in tonnage due to the lack of buyer interest in this