NEWS
IRON and STEEL  

EU HRC: Small buyers unwilling to take risk

Small hot-rolled coil (HRC) buyers deem the supply situation in Italy to be too risky, and are either looking for alternative sources or delaying purchases.

Some large customers are willing to negotiate tonnages with one mill that has seen production disrupted — a pipe-maker is in talks for a 30,000t cargo.

The Argus daily Italian index increased by €0.75/t today to €418.75/t ex-works. The northwest EU index nudged up €0.25/t to €427.5/t ex-works. Spot activity in the north has ground to a halt of late with mills and customers focusing on contractual tonnage — steelmakers suggest they have sold out December production and have no desire to play in the spot market because they allude to strengthening lead times.

Some German service centres suggest their competitors are agreeing to €80/t declines with automotive customers for January-June 2020, despite not being able to secure such levels from mills.

While many buyers are enquiring with both local European producers and importers, not all of them are in a rush to buy because of the approach of year end and concerns over price volatility.

Some Italian mills have been successful in closing smaller tonnage deals this week, but overseas mills are not keen to commit — Turkish mills expect scrap costs to firm further and do not want to sacrifice any margin.

An offer was made to east Europe at $490-495/t fob Turkey. Turkish buyers also confirmed receiving offers from European suppliers after an offer for small tonnages was heard into north Africa from a Benelux-based mill yesterday.

Meanwhile, the saga between ArcelorMittal and the Italian government continues, with the latter rejecting the company's plan for the ex-Ilva assets. Unions have called strikes for 10 December. Some buyers remain sceptical that ArcelorMittal will pull out of the investment.

News No: 7802
Date: 2019/12/06 - 20:33
News Source: Argus Media

EU  HRC  European  ArcelorMittal  investment 

Comments:

Leave a Comment:

   
   
   
 

Over $595m of bonds issued by industry, mining sectors since Mar. 20

Director General of the Investment and Financing Office of Iran’s Industry, Mining and Trade Ministry said 25 trillion rials (about $595.2 million) of bonds have been issued through industry and mining sectors since the beginning of the current Iranian calendar year (March 20).
 

India to save 20% logistic cost in supplies to CIS countries via Chabahar

By developing strategic Chabahar Port in Iran, Indian will reduce logistics cost by 20 percent in container transport to CIS countries, bypassing China or Europe, Indian Minister of State for Shipping Mansukh Lal Mandaviya stated.
 

GSI plans a two-fold rise in mining exploration operations by Mar. 2021

Head of Geological Survey and Mineral Explorations of Iran (GSI) said mining explorations are going to increase by 100 percent in the current Iranian calendar year (ends in March 2021), IRNA reported.
 

Amended EU safeguard measures to result in HRC import volume drop, hurt independent distributors, Assofermet says

The proposed changes to existing EU safeguard measures for hot-rolled coil would result in a drop in import volumes and consequently injure independent distribution in Europe, Italian steel distributors’ association Assofermet said in a letter to the European Commission (EC).
 

Over $1b invested to build 4 petchem parks across Iran

Managing Director of Iranian Investment Petrochemical Group (IIPG) says nearly 44 trillion rials (about $1.04 billion) has been invested to construct four petrochemical parks across the country.
 

Eurofer seeking CVD on Turkish HRC

European steel association Eurofer has filed an anti-subsidy complaint against Turkish exporters of hot-rolled flat steel with the European Commission, alleging that low-priced and subsidised imports are harming the European market.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners