Domestic prices for hot-rolled coil have inched up in Europe on July 4, although traded volumes remained limited due to slow demand.
Platts assessed domestic prices for hot-rolled coil in Northwest Europe up Eur5/mt on day to Eur685/mt ex-works Ruhr.
Deals for small lots of coil have been heard at Eur670-700/mt ex-works Ruhr. Market sources estimated achievable prices at Eur680-700/mt ex-works Ruhr.
Majority of the market participants believe that scheduled maintenances at some mills and unplanned production issues at other plants would support the domestic prices. But the availability reduction unlikely to be enough to result in substantial price recovery.
“Demand is quite low and EU mills strategy to motivate customers to buy on spot base with further discounts did not work so now they are trying to get higher prices,” a German service center source said.
European buyers have been showing limited interest in imported coil from Asia due to long lead times. In addition, spread between domestic and imported coil prices has not been wide enough to spur buyers’ interest.
Platts assessed prices for imported hot-rolled coil in Northwest Europe stable on the day at Eur625/mt CIF Antwerp July 4. Offers have been reported at Eur630-650/mt CIF Antwerp for the material from Asia and tradable values at Eur610-630/mt CIF Antwerp.
In South Europe, Italian mills have been aiming for higher prices, but continued to give discounts to secure sales in the slow market.
“Italian mills increased the offers, but it is a nominal rise, as the mills continue to sell at lower prices to generate cash flow,” an Italian trader said.
Platts assessed domestic prices for hot-rolled coil in South Europe at Eur650/mt ex-works Italy on July 4, up Eur5/mt on the day.
Tradable values have been heard at Eur640-650/mt ex-works Italy and unconfirmed deals at Eur680/mt delivered Italy.
Platts assessed prices for imported hot-rolled coil in the region at Eur620/mt CIF Italy on July 4, up Eur5/mt on the day.
Deals for the material from India have been reported at Eur620-625/mt CIF Italy and offers for the coil from Far East have been heard at Eur610-620/mt CIF Italy.
Platts is part of S&P Global Commodity Insights.
Author Maria Tanatar
