Negative mood prevails in local EU HRC market, import prices slump further

Thursday, 14 March 2024 16:13:19 (GMT+3)   |   Istanbul
       

Workable prices in the EU HRC market have decreased further in the past week. However, business activity has remained slow lately amid the lack of real demand, while market insiders have started to discuss the necessity of output cuts to stop the downtrend of HRC prices and to balance the market. Meanwhile, although import offers have kept moving down, especially those coming from Asia, interest in imports has remained muted mainly due to high risks related to safeguard quota exhaustion.

More specifically, HRC prices from mills in northern Europe have been estimated at €700-720/mt ex-works for April-May delivery, down by €10-20/mt week on week. Meanwhile, the tradable prices have been assessed at €690/mt ex-works, against €700-720/mt ex-works last week, while offers from Italy have been reported at around €700/mt delivered to Germany. “More talk about output cuts has been heard in the market to balance it, but for now European mills are not in a hurry to adjust their production, also given that interest in cheaper imports is close to zero,” a market insider told SteelOrbis.

Workable prices in Italy have settled at €670-680/mt ex-works, versus €680-690/mt ex-works last week, with many suppliers still offering for April delivery, while indicative offers from mills have been estimated at around €680/mt ex-works, down by €20/mt week on week.

In the meantime, import HRC prices in southern Europe have continued to show declines this week, falling to €580-630/mt CFR, versus 600-640/mt CFR last week. More specifically, offers through traders for ex-Asia HRC, including Vietnam, Taiwan and Japan origins, have been voiced at €600-610/mt CFR, including 90-day delayed payment, down by €5-10/mt week on week. However, according to sources, direct business has been heard between some Asian mills and European customers at €580-590/mt CFR LC at sight, for ex-Vietnam and ex-India HRC in particular, for May shipment, which means June-July arrival.

Furthermore, HRC offers from Egypt and Turkey have been voiced at €630/mt CFR for May shipment. However, according to sources, offers directly from Egyptian mills have been heard at lower levels, or at around €590/mt CFR.

Import offers for ex-Asia HRC in northern Europe have been estimated at €610-620/mt CFR Antwerp, down by around €10/mt week on week.


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