Domestic prices for coated and cold rolled coil (CRC) in Europe have once again increased over the past two weeks, even though distributors have kept restocking limited volumes, trying to avoid building up high inventories given the uncertain market and rather pessimistic outlook for steel demand at the beginning of next year. At the same time, import prices have continued to increase as well, though trade has been limited amid longer lead times and rather uncompetitive offers as compared to local prices.
Specifically, in the domestic CRC market in the EU, tradable prices have increased by around €20/mt over the past two weeks to €750-760/mt ex-works in Italy and to €750-770/mt ex-works in northern Europe. At the same time, European mills have been giving higher offers for February delivery CRC, at €780/mt ex-works in Italy and at €780-800/mt ex-works in the north.
At the same time, import prices for CRC mainly for Asian origin have been voiced at €720-740/mt CFR, up by €20-30/mt over the past two weeks. “Some traders still estimate workable prices for import CRC at €700/mt CFR, but we doubt any seller will accept this level.
In the meantime, the tradable prices for HDG have increased to around €780-800/mt delivered or €760-780/mt ex-works in Italy, up by €10/mt over the past two weeks, while in the north workable prices have been estimated at €780/mt ex-works and above. Meanwhile, import HDG offers have been voiced at €800-840/mt CFR, against €785-815/mt CFR last week. In particular, this week India has sold around 40,000 mt in total of HDG in Europe at around €815-820/mt CFR. Among those deals was a deal for 12,000 mt concluded by an eastern India-based integrated mill for delivery to Rotterdam at $845/mt FOB or €820/mt CFR, while a Gujarat-based mill in the west has reported a booking from Italy for 15,000 mt at $840/mt FOB (€814/mt CFR). At the same time, by the end of the week offers for ex-Vietnam Z140 HDG have been heard at as high as €840/mt CFR Spain.