South Europe HRC import prices hit 2018 low

Posted on 28 September 2018
 

Source: Kallanish

Import prices for HRC into Italy and Spain have reached a record low level for 2018 on the back of increased competition from Turkish suppliers, Kallanish learns from sources.

The fall in prices has attracted a lot of interest from buyers ordering HRC as well as CRC and HDG. Nevertheless, all sources agree the current favourable window for imports could well close soon.

HRC from Turkey can be ordered at €515/tonne ($602/t) cfr South Europe. An Italian trader also says that CRC is available at €590/t cfr Italy. “We have confirmed during recent days a good number of orders for HDG as well into Italy,” the source adds.

According to Kallanish price series, the current level is the lowest registered since beginning of December last year.

Meanwhile Indian offers are somewhat less competitive. “For India we need to wait for the resolution of the issues at Essar in order to understand if they can become again competitive,” a trader explains. Another source reports CRC offers from India at €610/t cfr Italy, €20/t above Turkish levels.

Sources confirm that end users and service centres are placing orders with Turkey for stock material for 2019. They add however that this activity is not necessarily going to drag down prices at domestic European mills.

“Currently the Turks can compete for commodity grades, mainly, therefore specific requests from clients still need to be fulfilled by European mills. In addition, the current quotas system still means that the importing activity could slow down going towards the end of the year,” a trader comments. “At the moment the service centres have an interest in stocking some material at competitive levels because they believe the market will remain firm into the first quarter.” 



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