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HRC prices in Europe moving down to go below EUR 400- 18 Oct 10

During current week HRC prices in Italy have plunged by a significant percentage as domestic producers have pushed heavily for booking orders.
In Italy rumors are indicating that Marcegaglia Group would have booked with domestic Mill Riva a new contract for about 100,000 tonnes at a price of EUR 450 per tonne base parity.
Other customers are indicating that a price of EUR 460 per tonne EXW or even DDP would be easily achievable from all domestic producers.
Offers from imports are now given at prices ranging EUR 450 per tonne to EUR 470per tonne CFR FO, with clear decreasing trend also helped by stronger EUR.
Particularly Erdemir is indicated as very active with offers, given also outside usual tenders, between EUR 460 per tonne to EUR 470 per tonne CFR FO.
As to next scenario, opinions in the market are hugely deferring between those indicating that HRC price will soon fall below EUR 400per tonne level and others convinced that prices will recover before end of the year, due to unsustainable stock low level situation.

Oct 18, 2010 07:58
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