EUROPE HRC WRAP: Domestic prices up in north on limited supply

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €1,162.92 ($1,380.68) per tonne on July 9, up by €13.42 per tonne week on week and up by €15.23 per tonne month on month.

The index was based on achievable prices estimated by market sources at €1,120-1,150 per tonne ex-works on Friday as well as offers reported at €1,170-1,200 per tonne ex-works.

European HRC producers have good order books, and were offering material for fourth-quarter delivery, with some claiming to be sold out until the end of the year and, consequently, in no rush to make concessions.

As a result, the number of offers, particularly in the Northern European market, has been limited, with producers holding back from trading.

Buyers, in the meantime, have been holding back from making new deals due to the still-high prices, long lead times and full credit lines. Transactions have mainly been made for back-to-back business.

Domestic prices in Italy have been fairly stable, with only a minor negative correction due to resistance from buyers to high prices and some competitive import offers. Market sources believed, however, that this was not a sign of a change in trend and that prices were fluctuating due to poor market activity.

Fastmarkets calculated its corresponding daily steel HRC index, domestic, exw Italy, at €1,117.38 per tonne on July 9, down by €2.14 per tonne week on week, and down by €25.12 per tonne month on month.

It was based on offers reported at €1,050-1,200 per tonne ex-works and achievable prices reported at €1,050-1,130 per tonne ex-works.

Some competitive offers, particularly to the south of Europe, have not affected domestic prices due to the effects of anti-dumping and safeguard measures, sources said.

Offers of HRC from Asia and Turkey have been heard at €1,000-1,050 per tonne cfr Italian ports.

Indian suppliers exhausted their third-quarter quota for HRC deliveries to the EU on the first day of the new three-month period, so any extra HRC arriving from India in the July-September period will be subject to a 25% safeguarding duty.

On July 6, the European Commission set definitive anti-dumping duties on imports of HRC originating from Turkey at 4.70-7.30%.