Prices for domestic hot-rolled steel in Northern Europe remained mostly stable despite signs of a downward trend, while prices in Italy declined based on recent reports of transactions in the market, Fastmarkets sources said on Friday, June 26.
In Northern Europe, sources reported a slight drop in prices due to limited buyer interest, but the market was mostly quiet on Friday. Sources said the weak demand was due to the early start of the summer holidays and uncertainty about the upcoming EU protective measures.
A source in the purchasing company said that on Friday prices were quoted in the range of 680-685 euros (773-778 dollars) per ton from the plant, but they were limited at auction.
"We are currently seeing a slight downward trend. The market is slow and people are reluctant to buy for many reasons," the same source said, adding that the summer vacation period for businesses was expected to start earlier this year due to uncertainty about the upcoming EU protective measures on steel, which will come into force on July 1.
"Most people want to see changes in the market first," said a customer source. When asked if the downward trend in prices is related to weak demand, they added that the current situation suggests for some factories: "You either lower the price or close the store."
Due to the lack of fresh materials, price factors, reports received on Thursday were postponed to Friday.
On Thursday, customer sources reported achievable levels in the same range of 680-685 euros per ton from the factory.
The daily price index for Fastmarkets hot-rolled steel for domestic consumption in Northern Europe (exw) on Friday was 682.50 euros per ton, unchanged from Thursday.
The indicator decreased by 3.75 euros per ton week-on-week, but increased by 6.04 euros per ton on a monthly basis.
In Italy, possible prices in the range of 660-685 euros per ton were reported from both buyers and private investors.
"I think the market is very weak; we are all waiting for news about precautionary measures. Probably 665 euros[per ton from the factory]is the most accurate figure at the moment," a sales source said on Friday.
"These figures[660-685 euros per ton from the plant]are largely true, but there is no activity. The market is waiting for the publication of quotas by country, but at the moment no one knows if anything will happen in the coming days," a second buyer source told Fastmarkets.
The third buyer reported a transaction price of 660-670 euros per ton from the plant, with inventory replenishment volumes of 500-1000 tons for delivery in July. They added,