In Europe, prices are currently stable and slightly increasing due to two main factors. Firstly, a number of middle and micro stockists are buying from European producers, but not in large volumes, but in the minimum quantities necessary to stay in business. The main reason for this is that European producers can offer faster delivery times, which allows stockists to remain competitive.
On the other hand, import restrictions create significant uncertainty for European stockists and service centers. If they are currently ordering from the Middle East or Far East, these materials will arrive in May-June, and given that the European market is usually weak during this period, buyers are trying to tread carefully. Moreover, uncertainties regarding price stability in China and Southeast Asia are adding to buyers' risk perception of the market.
In Germany, HRC prices remained at previous levels. HRC prices were stable around €630-640/t for May delivery. In Spain, HRC prices remained stable at €630-640/t, while in Southern Europe/Italy they were stable between €610-630/t.
CRC prices were seen to be on an upward trend. In Germany they were offered at €730-740/t, in Spain at €720-730/t and in Italy at €710-730/t, but sales were heard at €695-700/t. Plate prices varied between €640-650/t in Germany and €640-650/t in Spain and Italy.
Rebar prices in Europe remained at previous levels in the last week of March. Rebar prices in Germany were reported to be in the range of €600-630/t, while they were trading between €620-640/t in Spain and €610-630/t in Italy.
Wire rod prices are in the range of €610-630/t in Germany and €600-620/t in Italy. In addition, hot rolled plate (HRP) prices in Northern Europe were trading at €690-700/t, while they decreased to €640-650/t in Germany and €640-650/t in Italy and Spain. It was reported that these price differences are considered to be a reflection of the changes in regional demand and supply conditions.
Around 150,000 MT of Dexin wire rod has been sold to Europe since the preliminary draft of the revised EU safeguard measures stated that no quotas would be applied to Indonesian wire rod. Sales are reportedly made through Arcelor Mittal International, Duferco, Macsteel and VMI with direct Japanese trader financing.
The risks to this reported volume of sales will be high if the final draft of the revised safeguard duties brings Indonesia back into the quota. For these reasons, more people in Europe are in favor of waiting. Buyers are cautious about placing new orders, waiting for market conditions to become clearer and prices more stable.
Comments
No comment yet.