The domestic price of EUROPE HRC in Northern Europe jumped day-on-day on Monday August 24, supported by the absence of competitive imports and reduced domestic output, sources have told Fastmarkets.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €۴۴۳٫۷۵ ($۵۲۳٫۴۰) per tonne on Monday, up by €۱۰٫۰۰ per tonne from €۴۳۳٫۷۵ per tonne on August 21.
The index was also up by €۲۴٫۵۸ per tonne week on week and up by €۳۵٫۵۴ per tonne month on month.
Monday’s index was based on “workable” prices heard at €۴۳۰-۴۶۰ per tonne ex-works as well as offers reported at €۴۴۰ per tonne ex-works.
One big steelmaker increased its offer to €۵۰۰ per tonne ex-works last week, but this was not included in the index after buyers deemed it “unworkable.” The high offers, however, showed that steel mills will insist on higher prices for HRC as soon as market activity recovers, which is likely to be in late August or early September, sources told Fastmarkets.
*** seasonal slowdowns
Although buying activity has remained weak through mid-August, due to seasonal slowdowns, domestic EUROPE HRC prices in Europe have been gradually rising since late July, and price recovery was expected to gather pace in September, when trading activity traditionally revives.
Buyers have turned to European producers because there is no alternative material being imported into the EU from overseas. At the same time, European steelmakers have not resumed operations fully, after idling equipment during the Covid-19-related lockdowns in spring. As a result, buyers were being forced to accept the price rise, market sources said.
*** Demand is stronger
“Demand is stronger, which is a normal situation for late summer-early September,” a Northern European producer said.
“Inventories are at a comfortable level, but buyers are ready to negotiate new deals at higher prices because there are only few import offers in the market, and they are too high compared with domestic prices,” he added.
“In addition, there is less blast furnace capacity running after lockdown, and this drives prices up because mills are offering October production now,” he said.
*** Iron ore costs and anti-dumping investigations
Rising iron ore costs, anti-dumping and anti-subsidy investigations into Turkish HRC by the EU, as well as the toughening of import safeguard measures, have also supported the domestic price recovery.
In the meantime, official offers of EUROPE HRC in Italy have been reported at €۴۷۰ per tonne ex-works, and market sources expected that deals would be done at €۴۳۰-۴۴۰ per tonne ex-works in early September, when market activity begins to recover after the summer lull.
این مطلب بدون برچسب می باشد.
ثبت دیدگاه