The effects of this cheaper overseas material were stronger in Italy due to that country’s traditionally higher exposure to the import market.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy
, at €1,048.75 ($1,244.43) per tonne on July 30, down by €32.50 per tonne week on week and by €81.43 per tonne month on month.
The index was based on offers and achievable prices heard at €1,040-1,060 per tonne ex-works.
Demand has been gradually declining because of the summer lull, following the traditional cycle, and the number of deals has been limited. But the competitive import offers have still exerted downward pressure on prices, market sources said.
Offers for material from Russia have been heard at €920-940 per tonne cfr, including the EU’s anti-dumping duty on material from that origin.
The competitive import offers to Italy triggered the decline in domestic prices, market sources said.
Offers were reported from Turkey at $1,030 per tonne fob, from Japan at $1,180 per tonne cfr, and from Egypt at €990 per tonne cfr.
HRC from India was available in Southern Europe at €870 per tonne cfr, sources said, but could also be subject to a 15% safeguard duty.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe
, at €1,143.33 per tonne on July 30, down by €15.42 per tonne week on week and by €18.88 per tonne month on month.
The index was based on achievable prices estimated by market sources at €1,130-1,150 per tonne ex-works.
Buyers in Northern Europe have sufficient stocks of coil booked until the year-end. The region’s producers have either been offering coil from end-2021 rolling or were sold out for the full year. As a result, sellers feel no need to substantially decrease their prices in an attempt to boost sales; and buyers have been in no hurry to pay higher prices to get bigger volumes.
Distributors and producers in Germany, the major market in the region, have been dealing with the consequences of recent floods there. Although production sites have not been affected, transport and distribution of raw materials and feedstocks to production sites have been disrupted and were unlikely to return to normal for at least several weeks.
This situation, combined with the seasonal market slowdown, has resulted in a decline in demand in the short term. But the disruptions to the transport network, and damaged coil stocks at some steel processors, were likely to result in a faster recovery of demand after the usual summer lull.
The latest import offers for HRC in Northern Europe were heard at €930 per tonne fca Antwerp, including both the anti-dumping duty set by the EU and the export duty imposed by the country of origin.
Offers of material from India have been reported around $1,100 per tonne cfr Antwerp. But market sources said that this material was likely to be subject to safeguard duty at 15%.