Posted on 18 Mar 2020
South European coil import prices have moved downwards during the last two weeks, helped by a more favourable exchange rate and more flexible offers from international suppliers, Kallanish notes.
Traders note that since last week HRC in Italy and Spain has become available at €450-470/t cfr thanks to the recovery of the euro against the dollar. The exchange rate remains relatively favourable this week and the increased measures in Europe for the coronavirus outbreak are making some key suppliers such as those from Turkey a little more flexible on offers.
“Last week I personally sold quite a lot. Buyers wanted to secure volumes as soon as possible. This week the market is very silent and I expect it to continue into the next,” an Italian trader comments.
“I am telling buyers to secure maybe 20-30% of their future needs via import as many European producers will slow output and whenever the coronavirus situation is partially resolved it might become difficult to find volumes,” another trader notes. “In the near future buyers will be looking with more attention at the available volumes, including those already being shipped and therefore with a firm indication on delivery times.”
This week the first indications of a direct impact on flat product supplies in Europe is coming from Italy, where ArcelorMittal is slowing down Ilva’s output significantly (see related article). Further measures could be taken in countries such as Spain and France, confirming that availability could be tight after the coronavirus emergency is resolved. “In China some qualities remain unavailable demonstrating that the restart in […market] activity could be slower than the recovery in demand,” a trader adds.
Source:Kallanish
