Posted on 10 Oct 2019
EU coil importers are continuing to feel the pressure from descending prices. There is little evidence that prices have bottomed out and most importers still have material at docks to sell which was ordered in the June-July period.
Indian and Turkish suppliers are offering HRC at some €405-410/tonne ($445-450/t) cfr South Europe. One trader notes that while Turkish mills have been steady at this level for over a week, Indian suppliers continue to lower their offers.
“I think Indian offers can be quite competitive at the moment,” a source says. Another trader adds nevertheless that Turkish suppliers appear to be trying to increase prices. “I have seen offers moving up $10/t this week as scrap [… prices] have begun to turn and the exchange rate has changed,” he adds.
According to Kallanish price series, HRC import prices into Europe have lost some €60-80/t since June-July. An attempt to raise prices was announced by European steelmakers during August, but this has not been successful.
“We have bought [… material] back in July because we were not expecting such a steep fall in prices in Asia. Most traders did the same and so did many service centres. Now we need to manage the situation and the negative sentiment persisting in the market,” an Italian source comments. “If you ask me, I would say it is probably now a good moment to buy from imports, but overall buyers are still in a waiting position in Europe.”
