It is reported that the speed of steel price slide in Europe has increased last week.
During last two days of the week, news about progressively lower offer on HRC were going around the markets amid growing worrying of the stockiest and in general all operators.
Particularly, Turkish HRC exporters have been indicated as offering prices around EUR 550 per tonne CFR FO Med Port that is a substantial reduction from previous bottom prices that since almost 2 months were never going below EUR 570 per tonne to EUR 580 per tonne.
In Antwerp HRC from import are booked at prices lower than EUR 600 per tonne CFR FO which is, again, a substantial reduction of the previous achieved levels.
Similarly HRP prices are loosing ground with domestic producers in Italy, still struggling to fill up April order book. As a consequence prices are going down by EUR 10 per tonne to EUR 30per tonne depending on the case and situation.
It seems we are in front of a situation very similar to those we have assisted during 2010, with prices that are falling down rapidly and suddenly after having resisted on good position and levels for a short period.
It's quite evident that the price increases applied and paid during January were the consequence of a policy of announcement well organized by the major producers all around the world.
At the beginning of this year and even well before the end of 2010, almost all operators were convinced that the 2011 would have started with a good spectacle of "fire works" and a strong recovery of the prices. Thus every body, resuming activity after Xmas holidays, was running to immediately book whatever possible in the strong and correct conviction that waiting one day would have brought just an higher price.
Unfortunately that was nothing but a mere illusion.
The consumption that is remaining at very unsatisfactory and sluggish levels, could not support for long time the price rally inducted by the Producers. Today decreases and gloomy perspective are nothing but the logic consequence of the still fragile recovery in the EU.
May be the tragedy of Japan will possibly help steel market to bridge up to the next wave of purchases, as first information’s are indicating that major Japanese steel mills would have been hit and obliged to halt production.