Domestic European hot-rolled coil prices were stable on Dec. 3, due to slow trading activity and low levels of weak demand in the domestic flat steel market.
“Competition between mills and distributors is intense in the spot market, as service centers are destocking at year-end,” a Germany-based distributor said. The source reported that some mills in southern Europe were undercutting current market prices, although it did not impact prices on the wider spot market.
“The market remains cautious, with limited demand recovery expected in the short term,” the source added.
Market sentiment indicated that a demand recovery after Christmas was necessary to support prices, as well as a reduction in capacity. Supply-side factors are expected to play an important role in supporting prices by decreasing the availability of material in the market.
Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr on Dec. 3, stable on the day.
An offer was heard at Eur550-570/mt EXW Ruhr.
Platts assessed domestic HRC in Southern Europe at Eur545/mt EXW Italy, stable on the day.
“Imports remain limited due to pricing issues, the Euro/USD exchange rate, and EU safeguards,” according to sources. A reduction in demand for imports helped support demand for material from domestic European mills.
Platts assessed imported HRC in Northwest Europe at Eur530/mt CIF Antwerp, stable on the day.
Platts assessed imported HRC in Southern Europe at Eur525/mt CIF Italy, stable on the day.
Platts is part of S&P Global Commodity Insights.
