The European HRC market is about to enter a holiday lull, and although domestic demand has almost completely subsided, there is still some activity in the import of both slabs and HRC.
A deal was concluded to supply 30,000 tons of HRC to Southern Europe from Turkey at a price of $570 per ton FOB or about €565-570 per ton CFR, including taxes. It is reported that another buyer in Europe ordered the goods in Turkey at a price of 575-580 dollars per ton on FOB terms. In addition, 25,000 tons were sold to Spain from Japan at a price of 745 euros per ton, which is considered a high price. "Japan is a first-class material. They do not charge additional fees for the S275jr Customers in Bilbao only buy with DDP, some customers in Tarragona or Sagunto can buy with CFR and pay for CBAM, as well as the risks associated with the duty," said a SteelOrbis trader.
In addition, sources said that Egypt this week offered at a price of 725 dollars per ton per day, including CBAM, while Taiwan offered at a price of 720 euros per ton per day. The latest prices from India were recorded at $640-650/t CFR in the following previously reported transactions at $630-650/t on CFR terms.
The local HRC offers across Europe remain stable due to the lack of trading, with most players expecting a wake-up closer to early September. In Italy, the real price is 700 euros per ton from the factory, while manufacturers intend to resume sales after the holidays at a minimum of 710-720 euros per ton from the factory. In the north of the country, prices from the factory are 705-715 euros per ton, which is approximately the same as in Spain. The highest target levels in Europe are up to 730-750 euros per ton of finished products, but they are currently considered unworkable. In addition, sources reported that the prices of rolled steel in Italy fell to 690-700 euros per ton, excluding production, which is lower than the prices of raw materials. "Raw material prices have increased due to quota-related shortages, but the situation is different in the production of rolled products.[With such a price difference], the price of a slab at the level of 570-580 dollars per ton of CFR is not feasible. In my opinion, it should be $540-560 per ton CFR," said a SteelOrbis source.
In the slab segment, the Italian company, according to sources, recently ordered a full batch of Indonesian slabs at a price of 470 dollars per ton on FOB terms, or about 540-545 dollars per ton according to CFR for semi-finished HRC products. Offers from Vietnam are $540-545 per ton CFR, while China offers sheet metal at a price of $570-590 per ton CFR. Turkey offered slabs at a price of $560-560 per ton CFR, while Algeria, according to sources, offered approximately $490-500 per ton FOB, while the freight of medium shipments was estimated at about $30-40 per ton.
Author: Editorial staff