European HRC seller talks of first-quarter increase

A European coil producer refuted suggestions that the market lacks direction, and has tabled €20/t increases for the first quarter of next year, it told Argus today.

"The direction is pretty clear, but people don't want to hear it," the mill executive said. His company is seeking €570/t ex-works for first-quarter hot-rolled coil (HRC) deliveries, and he estimated current tradeable value at €550/t ex-works. A trader said €530-535/t would be achievable for larger orders, while buyers estimate values at €540-545/t.

Import pressure has lessened, certainly in northern Europe, with Turkey not as eager to sell. There is a widespread belief that the US will relax its section 232 duty on Turkish material to the original 25pc, which could partly explain why Turkish mills were less competitive in Europe. Import appetite was further subdued by the market focusing on the existing quota and what the European Commission may announce for the definitive measure in February. Softer domestic prices also reduced the arbitrage somewhat.

The mill source cited supply-side constraints, with three European blast furnaces off line for maintenance and low water levels on the Rhine reducing production at some German mills. ThyssenKrupp has brought forward blast furnace maintenance after declaring force majeure because it cannot ship raw materials on the Rhine. This was causing its lead times to extend, but was not seen as a major issue for buyers, which had sufficient inventories.

Most buyers were surprised by the mooted price increase, suggesting that the market is still searching for clarity after the Euroblech exhibition in Hanover. Service centres are largely covered for the rest of the year and not yet willing to commit to first-quarter supplies given concerns over future direction and tepid demand.

Domestic prices fell last week as mills were looking for additional volumes given cancellations by automotive sellers, and with one southern European steelmaker aggressively trying to fill its orderbook.

On the cold-rolled side, there was some import pressure, with Brazilian material on offer to the north below €600/t cfr, substantially beneath expectations of domestic mills at around €630/t ex-works.

In the UK, one domestic producer cut its first-quarter HRC offer to £520/t delivered duty paid (ddp), down by £10-20/t from the fourth quarter, and buyers expected other mills to follow suit. An offer of Turkish HRC at £510/t ddp spooked the market and made life tougher for sellers with material to offload. This offer came hot on the heels of a slew of Turkey-origin sales at £530/t ddp. The new offer was from a Marmara-based mill not often seen in the market.

"It looks like prices will soften rather than rise, I am very nervous about placing forward because of the lack of direction," a service centre source said.

Galvanised was the softest product in Europe, including the UK, given the automotive issues and the level of stocks in the system.

News No: 2480
Date: 2018/10/31 - 18:28
News Source: Argus Media

HRC  Euroblech  galvanize  furnace 


Leave a Comment:


Chinese Steel Market Highlights - Week 15, 2019

This week Chinese steel prices witnessed significant increase in domestic market following hike in iron ore prices fueled by limited supply in global market.Also strong futures, improved domestic demand along with higher profit margins lead to uptrend in Chinese steel prices.

Vietnam Mills Books 30,000 MT HRC from Russia

Imported HRC offers to Vietnam inched up this week following uptrend in export offers from China. On weekly basis imported HRC offer to Vietnam inch up by USD 5/MT from China.

China : Baosteel Keeps HRC Price Unchanged for May Deliveries

China’s major steelmaker - Baosteel has announced flat steel prices for May deliveries today. The company has kept its HRC, CRC prices unchanged.

India: Domestic HRC Prices Uptick in Traders Market; Trades Remain Sluggish

This week Indian HRC prices witnessed marginal increase in domestic market post recent hike by major Indian steel mills by INR 500-1000/MT in the beginning of this month.

Global Flat Steel Market Overview - Week 15, 2019

Chinese HRC export offers move up amid gains in domestic market- Chinese HRC export offers moved up this week following surge in domestic HRC prices.

Chinese Mills Raise HRC Export Offers to Vietnam

Imported HRC offers to Vietnam reported slight increase this week amid surge in steel prices from China. Higher export offers from Chinese origin HRC in the starting of the week amid surge in domestic prices in turn leads to marginal increase in imported HRC offers to Vietnam.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners