Ambiguity and gloom continues to engulf the flat steel market in Europe. Uncertainty about the direction is keeping buyers at bay. Simultaneously distributors and stockiest are equally ambivalent about taking any position lest they absolve the gains made in Jan-Feb’11.
Mills are keeping prices and production levels steady as they are optimistic about buying revival after a fortnight. The trend is expected to reverse towards the end of April due to minimal buying in the Q1 and stock depletion. With the onset of summer and ensuing construction activity buying will become inevitable.
However presently the agony of low order levels continues to plague mills with April and May shipment still available for booking.
Chinese offers are unable to match buyer expectations, while Indian mills are struggling to revive their presence. It is reported that HRP of Indian origin has been booked at a level around Euro 560 per tonne CFR FO Antwerp, against offer levels of Euro 600 per tonne CFR FO till about 10 days ago.
Russian Mills are pushing down prices in a bid to maximize booking. The current offer levels are as follows
1. CRC - Euro 630 per tonne CFR FO
2. HDG - Euro 660 per tonne CFR FO
3. HRC- Euro 560 per tonne CFR FO (Mediterranean ports). On North Russian loading ports HRC are offered at a level around USD 700 per tonne FOB ST.
Brazilian HRC buyers are bidding around USD 760 per tonne CFR FO which is preventing the Russian Mills from matching the levels as the freight is around USD 60 to 70 per tonne for cargoes of minimum 20,000 tonnes.
Turkish HRC exporters are offering at around USD 810 per tonne to 820 per tonne CFR FO Italy but the grapevine has it that booking are happening at level of Euro 550 per tonne CFR FO or USD 775 per tonne.
( Source: www.steelguru.com)