May 10, 2023
EU HRC market mood bearish on competitive imports, European mill price cuts

Majority of EU mills hold back from offers

Some sources think import prices reach bottom

Prices for imported hot-rolled coil in Europe have softened further in Southern Europe and have remained competitive in the northwest EU on May 9, contributing to the bearish sentiment in the market.

A Southern Europe-based steelmaker has already decreased its offers for HRC to Eur750/mt ex-works Italy, compared to previous official offers from the region’s mills above Eur800/mt ex-works Italy.

The majority of domestic mills have been holding back from making offers due to full orderbooks, effects from technical issues or planned maintenances. The buyers have also been approaching the purchases with caution, trying to avoid accumulating bigger stocks due to anticipated negative price correction.

Platts assessed prices for domestic hot-rolled coil in South Europe Eur20 lower on the day to Eur775/mt ex-works Italy on May 9.

The region’s mills have been offering the material at Eur750-Eur800/mt ex-works Italy, and market sources estimated tradable values within the same price range.

Platts assessed prices for imported hot-rolled coil in South Europe down Eur10 on the day to Eur650/mt CIF Italy on May 9. The assessment was based on deals and offers for the material from Indonesia and South Korea heard in the market.

Some market sources suggested that deals have been settled at lower prices, but the information has not been widely confirmed in the market.

“Import prices could reach Eur600/mt CIF Italy and domestic around Eur700/mt ex-works Italy in the next month-month and a half,” an Italy-based service center source said.

Some sources, however, believed that import prices had moved close to the bottom and that downward pressure from import mills has decreased. Additionally, EU mills were expected to return when offers when oversea offers rise.

Author Maria Tanatar

Source: Eurometal