Italian and Spanish sources are continuing to receive competitive offers from importers, although the market outlook in southern Europe remains very uncertain, Kallanish learns from sources.
Turkish suppliers remain the most competitive in the HRC sector. One service centre in Italy mentions the possibility of ordering at €480/tonne ($551/t) cfr for shipment in January, but this level was judged too low, and therefore not available, by traders across Italy and Spain.
“HRC from Turkey can well be in Italy at slightly below €500/t cfr, but I doubt the price has dropped for normal buying volumes below the level of €490/t cfr,” a trader says. Another source adds that in Spain and Portugal import offer for HRC are at €500/t cfr and above.
Meanwhile CRC is now being offered in the market at some €590/t cfr Spain from Brazil, a price similar to the Turkish levels.
The pressure from import offers is having a direct effect on the domestic market as Italian mills are reported to have sold some volumes at €490/t base for HRC.
“The outlook is uncertain, if the US reduces the Turkish import tariffs to 25% the market can pick up a little, otherwise the situation can become very tense,” a trader comments.