EU HRC: Increased appetite for imports

The view of domestic European hot-rolled coil (HRC) mills being the cheapest sellers is starting to recede, as import offers increase in volume and decrease in price.

The softening in prices outside of Europe, led by India, and foreign exchange fluctuation have made imports slightly more attractive.

Argus' daily northwest European and Italian indices were both unchanged today, at €459.25/t and €437/t, respectively.

A Turkish mill refused a bid at $460/mt cif, the equivalent of around €415/t cif, for HRC from an Italian buyer. Imports were still around €430/t cif base or slightly lower, while domestic mills were heard selling around €440-450/t base delivered. Turkish mills have been in discussions with European buyers over the last week, but some suggest demand is limited because of the amendment to the safeguard.

Offers into Antwerp were heard as low as €435-440/t cfr for HRC, but no fresh deals were reported.

Buyers are still purchasing just what they need, given uncertainty about the market direction going forward, but traders suggest there is more booking appetite. Some mill sources also suggest order intake is higher, but there are still a few mills keen for bookings.

One steelmaker alluded to the reduction of Saudi Arabian oil supply and its impact on price — if it is sustained, the higher oil price will increase costs for mills and steel buyers, but higher raw materials have not filtered into firmer prices yet this year because of flat demand.