EU HRC market sentiment bearish; import prices stop declining

European hot-rolled coil market sentiment was bearish May 23, although imported coil prices stopped declining.

“It is impossible to get discounts from Asian mills, it is even hard to get same prices as they were accepting last week,” a trader said. “Maybe some big buyers can get same low prices, but I doubt it. Exchange rate is making things harder.”

Platts assessed prices of imported hot-rolled coil in Northwest Europe up Eur5/mt on the day at Eur620/mt CIF Antwerp on May 23.

The assessment was based on offers heard at the lower end of the Eur620-640/mt CIF Antwerp range for Asian-origin coil.

Platts assessed prices of imported hot-rolled coil in South Europe at Eur605/mt CIF Italy on May 23, up Eur5/mt on the day.

Tradable values were heard at Eur600/mt CIF Italy and offers reported in the Eur605-615/mt CIF Italy range.

Despite some stabilization in import prices and longer lead times for overseas coil, non-EU material offers have been competitive compared with domestic coil, market sources said.

Sluggish domestic demand from distributors and an anticipated rise in supply in the EU following the restart of some capacities closed for maintenance or due to technical problems have also weighed on the market.

Domestic offers, in the meantime, were limited as Northwest European mills held back from offering in spot market. Major steelmakers have notified their customers that they plan to return to the market in June with offers for September rolling coil, market sources said.

Market participants said the region’s mills have been avoiding spot offers as they prefer to finalize second half of the year contract negotiations with end-users first.

Platts assessed domestic prices of hot-rolled coil in Northwest Europe down Eur5/mt on the day to Eur755/mt ex-works Ruhr on May 23.

Market sources estimated tradable values in the Eur750-770/mt ex-works Ruhr range.

Platts assessed domestic prices of hot-rolled coil in South Europe at Eur700/mt ex-works Italy on May 23, unchanged on the day.

Offers were heard in the Eur700-750/mt ex-works Italy range and tradable values were reported at Eur670-720/mt ex-works Italy.

Platts is part of S&P Global Commodity Insights.

Author Maria Tanatar