European domestic hot-rolled coil prices fell slightly on May 1, reflecting continued pressure from subdued demand and oversupply concerns across the market.
Despite ongoing price reductions from domestic mills, buyer interest remained limited.
“Mills are attempting to secure orders for May by lowering prices, but buyers are only purchasing small quantities to meet immediate needs, ” said a distributor source. “Service centers in Germany suggest that mills should reduce production to prevent a potential price collapse.”
Service centers in Germany remain pessimistic about any short-term demand recovery, especially with the current holiday period dampening activity. Order books at domestic mills are reportedly thin, with no signs of near-term improvement.
“It’s the holiday period so it’s quieter. The demand won’t change next week or after two to three weeks, so it’s a big challenge from domestic mills as well to have a good order book,” said a service center source. “The supply is good, but demand is the real problem, and I hope we see more stable prices up to the summer holidays, but it will be difficult.”
The same source also expects the import market to be more active while the domestic side struggles, particularly as mills show increased flexibility in price negotiations, further eroding the domestic pricing.
While imports are expected to be more active, one trader cited activity only by some of the “big players” and uncompetitive prices coming out of Indonesia around Eur560/mt CIF Italy for 30,000 mt.
Platts assessed HRC ex-works Italy at Eur620/mt and HRC CIF Southern Europe at Eur530/mt, both stable day over day.
Platts assessed HRC in Northwest Europe at Eur650/mt ex-works Ruhr May 1, and imported HRC in Northern Europe at Eur540/mt CIF Antwerp May 1, both down Eur5/mt day over day.
Platts is part of S&P Global Commodity Insights.
