Posted on 29 Nov 2018
Spanish coil prices are moving down on the back of the continuous import pressure as well as a slowing in demand, Kallanish learns from market sources. This is in line with the trend registered in other parts of Europe.
Currently Turkish HRC imports are pegged at €490-495/tonne cfr Spain, with rumours that some offers have also been sent at as low as €480/t cfr Spain. “At the moment it is difficult to distinguish between real offers and attempts from traders to attract interest from buyers,” a source comments. Another trader confirms that levels below €490/t cfr Spain can only be achieved for direct orders to mills for volumes above 10,000 tonnes.
Local suppliers of HRC have lowered their offers in line with imports. The official asking price from the sole domestic producer is reported to be at €500-510/t ex-works base, but transactions are said to have been concluded at levels below this figure.
“The outlook for prices is bleak, a further €10-20/t reduction is more than possible,” a trader comments.
Demand wise, sources confirm a slowdown in purchases from service centres and end-users alike. “Demand has frozen due to the reduction of prices, buyers are waiting to understand where the bottom of the market is,” a source notes.
