Some northern European steelmakers are being more aggressive with offers into the south of the continent amid a seasonal buying slowdown.
A UK mill has been offering into Italy and Spain as it looks to fill holes in its rolling programmes. Southern European pricing has been under pressure given the macroeconomic backdrop and competitive import pricing, with domestic mills offering around €480-490/t ex-works, in line with third-country offers.
At the same time UK stockholders have been reticent to purchase, with uncertainty surrounding the country's exit from the EU impacting the pound, and outsell prices being under consistent pressure from lower replacement costs. Turkish imported material has been available at £500/t (€564/t) ddp and lower recently, which has not so much stimulated purchasing appetite but bitten into sheet pricing.
"I think Black Friday started a few weeks ago," one service centre executive said, referring to recent cut sheet offers from his competitors.
Demand has slowed in the north of Europe, which is why mills have been looking elsewhere to move tonnage. Mainland European mills have been searching for sales into the UK, given quieter demand closer to home.
Material could be available below €550/t ex-works in northwest Europe — a floor that mills have been trying to maintain — a source at one leading mill said, but added that lower prices are not necessarily representative of the wider spot market.
Some southern European sellers have targeted the equivalent of €540/t ex-works into the north, but Benelux-based stockists have reported deals closer to €520-530/t delivered.
The daily Argus north Europe HRC index was unmoved at €534/t ex-works today.
