EU HRC prices largely stable despite higher mill offers

Domestic European hot-rolled coil prices remained largely stable Oct. 28, as weak demand from end-users put downward pressure on prices.

Many market participants were left with “mixed feelings” in the aftermath of the EuroBlech steel fair in Hannover last week, a Germany based mill source said. Despite higher offer levels from European mills, market restocking requirements remained low, contributing to weak demand.

The source explained that “the Steel industry needs to increase prices as it is currently in a dangerous zone.”

An Italy based service center source supported this view, highlighting bearish sentiment in the domestic Italian market. According to sources, market activity seems to be slowing down slightly.

Platts assessed Northwest European HRC at Eur560/mt ex-works Ruhr Oct. 28, down Eur15 on the day.

Deals were reported at Eur560/mt ex-works Ruhr, and delivered Germany. Offers were reported at Eur580-640/mt ex-works Ruhr.

Platts assessed domestic HRC in Southern Europe at Eur550/mt ex-works Italy, stable on the day.

The spread between import and domestic European prices continued to narrow. A Germany based service center source said that some import prices are more expensive than domestic European mill prices.

Platts assessed imported HRC in Northwest Europe at Eur515/mt CIF Antwerp, stable on the day.

Platts assessed imported HRC in Southern Europe at Eur535/mt CIF Italy, stable on the day.

Platts is part of S&P Global Commodity Insights.

Anais Dolan