HRC prices across Europe remain steady with weak demand and import pressure. HRC EXW prices in Germany remain in the €580-590/ton range, while Spain is trading at similar levels. In Italy, producers were forced to lower their prices further due to the contraction in the market. They are now quoting €550/ton delivered for medium tonnage orders and €535/ton delivered for high tonnage orders. On the other hand, HRC export offers from Turkey are standing at €485-490/ton (excluding AD) and €510/ton (including AD) on a port delivery basis in Italy.
These levels of import offers are a clear indication of why local producers are struggling to match prices. Moreover, a deal for HRC originating from India was reportedly concluded last week at $590/ton CFR (€507/ton) in Italy. All these developments reveal that local producers in Europe are struggling even to maintain their prices at current levels.
Asian HRC offers were reported at €460-470/ton CFR Italy.
As for CRC, EXW prices remain stable at €690/ton in Germany and €680/ton EXW in Italy. In CRC, producers are unable to raise prices due to lack of demand and import pressure. The attractiveness of import options is affecting buying behavior, especially in non-automotive sectors.
In the galvanized coil (HDG) market, EXW-based transactions continue at €715/ton in Germany and €695/ton EXW in Italy. Although there was limited activity on the demand side, prices were reported to be generally stable. Weak demand for housing and durable consumption across Europe continues to weigh on galvanized product prices.
On the rebar side, a partial recovery and an increase in demand were recorded. EXW prices are trading at €620/ton in Germany and €580/ton EXW in Italy. In Spain, prices were reported at €610/ton. Despite the limited increase in demand, the reason for the lack of a significant increase in prices was stated as the increase in structural costs such as energy costs, which could not be reflected on prices.
In the heavy plate market, EXW prices in Germany were reported at €665/ton, while DEL-based prices were €660/ton. Italy, on the other hand, maintained its lower price policy compared to Germany with an EXW price of €600/ton for heavy plate.
Energy costs continue to affect prices
High energy costs in Europe are not reflected in market prices, despite being one of the most important components of producer costs. Under normal conditions, these costs should push prices up, but producers are unable to incorporate these increases into prices due to competition. Especially in high energy cost countries like Germany, producers are under margin pressure. While price declines in China are causing instability in the Asian market, HRC prices in the European domestic market are also unable to be pushed up. Moreover, with the summer vacation season approaching, market uncertainty is increasing, further weakening purchasing power. Demand and prices are expected to recover in September and October.
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