Domestic European hot-rolled coil prices were largely stable Oct. 9 as demand stabilized at lower levels, even as mills maintained higher offers.
Market sentiment remains uncertain on the long-term success of price increases by large European mills. A Germany-based trader said that despite “aggressive HRC prices by mills over the past two weeks,” some service centers are reselling large volumes of stock at low prices. As a result, service centers are undercutting mills while selling at a low margin for themselves.
A Germany-based distributor source said that “demand remains stable on a low level” contributing to “a trade reduction compared to last year, but at most a one-figure decline.” The source said that there is “no risk at the moment that prices will go down in the next couple of weeks.”
Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr Oct. 9, stable with Oct. 8.
Offers were reported at Eur550-600/mt EXW Ruhr.
Tradable values were reported at Eur540-560/mt EXW Ruhr.
Meanwhile, Platts assessed domestic HRC in Southern Europe at Eur545/mt EXW Italy, up Eur5 on the day. Offers were reported at Eur590/mt EXW Italy, and tradable values were reported at Eur550-575/mt EXW Italy.
A service center source based in Italy said it was “not convenient, and not a good idea, to buy imports right now.” The source explained that “when there’s a small difference between import and domestic prices it means people choose domestic prices.”
Platts assessed imported HRC in Northwest Europe at Eur535/mt CIF Antwerp, up Eur10 from Oct. 8.
Meanwhile, Platts assessed imported HRC in Southern Europe at Eur535/mt CIF Italy, also up Eur10 from Oct. 8.