LONDON (Scrap Register): The Southern European hot rolled cold (HRC) steel prices plummeted week-on-week to €332 per ton ex-works in the week ended September 11, as per the latest figures from the Steel Index.
According to TSI, South European HRC index lost €16 a ton since last Friday, closing the week at €332 a ton, the lowest level since May 2009.
Falls in Chinese-origin HRC import prices to €300/t CIF Italy and increased output by Ilva meant pre-holiday price levels quickly became unsustainable, forcing domestic mills to significantly drop their asking prices.
The majority of transactions were recorded in a €330-335/t range, while some deals were done even lower.
However, North European HRC prices were more stable, as market participants reported that producers were still offering the product between €370-380 a ton.
But an increasing gap with South European prices and imports, the latter reportedly at €320 a ton CIF Antwerp, may make maintaining this domestic price level difficult.
Meanwhile, 3.3kt of North European HRC swaps were cleared the week by LCH.Clearnet.