European domestic hot-rolled coil (HRC) prices were largely unchanged on October 20 despite reported low trading activity, which was attributed to high customer stocks.
Supply disruptions in Southern Europe, reduced attractiveness of imports and rising energy costs are the key factors helping local mills to hold prices and even pushing them to seek price hikes.
“Demand is not great but I think the weakness is exaggerated,” a buyer from Northern Europe said, adding that “stocks may be healthy now but a lot of that is due to front loading of imports”.
He also said that mills are getting more aggressive in trying to lift the spot market, supported by the fact that they are now negotiating their positions for the first half of 2027 for long-term contracts.
“Also energy is a massive problem at the moment. I do not think people appreciate the cost pressure impact of that enough,” the buyer added.
Market participants provided indications of tradeable levels for HRC in Northern Europe within the range of €740-750 ($830-841) per tonne ex-works on October 20.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €747.5 per tonne on October 20, down by €1.25 per tonne day on day from €748.75 per tonne on October 19.
The index was up by €1.25 per tonne week on week and up by €10 per tonne month on month.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €740.83 per tonne on October 20, down by €1.05 per tonne from €741.88 per tonne on October 19.
The index was up by €3.86 per tonne week on week and up by €10.08 per tonne month on month.
The Italian market was also quiet, with no major sales heard during the day, and estimates of tradeable levels were in line with Northern Europe at €740-750 per tonne ex-works.
The market was waiting for news from the Euroblech fair, which is taking place on October 20-23 this week in Hanover.
