EU hot rolled coil prices continue their downward trend

In Northern Europe, hot rolled coil was valued at €1,050/mt ex-works, down €5 from May 25, according to S&P Global Commodity Insights.

Both buying and selling sources confirmed Eur 1,050/mt ex-works as a tradable level for the day, but the transaction remained volatile despite the recent price downtrend.

"There are no deals in the market at the moment - but buyers are starting to realize they need to book," a trader source said.

Sources continued to state that buyers will return to the market in June to reserve material for the September period.

“June should bring some action in the market as buyers will finally need to book and plan for the post-summer period,” a second trader source said.

No import offers have been heard since India introduced new export duties, although sources expect foreign producers' new gauges to be higher. HRC imported to Northern Europe is valued at EUR 900 /mt CIF Antwerp as constant.

“The extremely cheap offers of imports are no longer available, although it is too early to talk about the price increase, we will definitely see some kind of stability,” the same trader said.

A producer source said he expects stability in the import market to offer a floor price in the European market.

“The market is bumpy, I would expect the new Indian duties to base pricing in the EU market alongside the China [coronavirus] recovery, but demand growth is still low,” another factory source said.

Another source saw that HRC prices have reached the price floor in the near term, but stressed that possible gas cuts from Russia and general inflation could affect the recovery in flat steel prices.

In the Italian market, import prices rebounded somewhat on May 25, and some Indian producers have heard that they are suspending negotiations after the recent introduction of export duties.

Prices from Japan as well as other Asian exporters increased during the day at $950-960/mt CFR Italian ports. A third trader reported that producers rejected the low prices and preferred to cancel allocations to the bearish European market.

Indicators for the domestic market remained relatively stable during the day, with offers reported at EUR 1,000/mt ex-works, with sources pointing out that the tradable values ​​in Italy are at EUR 980-990/mt ex-works.

Platts evaluated HRC in Southern Europe on the day as constant at Eur990/mt ex-works Italy.