“Demand is very poor,” a distributor source said. “Customers are only focused on some projects and restocking activity is already down for this quarter.”
Domestic prices for European hot-rolled coil inched up on June 14 despite weak demand as buyers avoid re-stocking.
Some mills have pushed offers higher due to the changes in the safeguard measures. Some sources disagreed with this move, saying that weak market fundamentals do not support the higher prices.
“Why would mills increase prices in such a weak market,” a trader source said.
EU member states approved June 11 the European Commission’s proposal to extend the bloc’s steel safeguard measures.
The EU steel safeguard measures will start on July 1 with a new restriction cap of 15% on six countries that used to ship their HRC under the residual tariff-rate quota. As HRC imports from Japan, Taiwan, Vietnam and Egypt will likely be reduced as a result, Europe-based buyers will have to substitute the material with either European coil or alternative non-EU suppliers without country-specific quotas.
Platts assessed domestic prices for HRC in Northwest Europe up Eur5/mt on the day at Eur630/mt ex-works Ruhr on June 14.
Tradable values were reported at Eur630-650/mt EXW Ruhr.
Meanwhile, Platts assessed domestic prices for HRC in South Europe at Eur620/mt EXW Italy on June 14, down Eur5/mt on the day.
Offers were reported at Eur640-650/mt delivered Italy. Tradable values were reported at Eur620-630/mt delivered Italy.
Interest in imported HRC remains dull due to longer lead times and the proposed changes to the safeguard measures.
Platts assessed imported HRC in Northwest Europe stable on the day at Eur605/mt CIF Antwerp.
Offers for Turkey-origin material were reported at Eur630/mt CIF Antwerp, including anti-dumping duties.
Meanwhile, Platts assessed imported HRC in South Europe stable on the day at Eur600/mt CIF Italy.
Offers were reported at Eur600/mt CFR Italy.
Source: eurometal.net
Export Sales Department II
Email: trung.nt@vinaonesteel.com | exports@vinaonesteel.com
VINA ONE STEEL MANUFACTURING CORPORATION
Address: Voi La Hamlet, Long Hiep Commune, Ben Luc District, Long An Province, Vietnam.
Website: www.vinaonesteel.com
