Domestic European hot-rolled coil prices remained largely stable Oct. 14, as buyers were skeptical of the sustainability of higher European offer levels. Additionally, the gap between domestic European mill prices and import prices remained low, resulting in the import market becoming less attractive.
“The market remains quiet,” said a Germany-based service center source, adding that there has been a “theoretical price movement upwards” despite real demand remaining weak. The source attributed higher offer levels to the impact of the Chinese stimulus package on domestic Chinese production costs and its effects on the European market.
The situation in the market stayed unchanged, contributing to uncertain market sentiment. Consumers remained hesitant to buy due to “a lot of material still waiting to be customer cleared,” according to a second Germany-based service center source, who added that “weak demand levels are not helping the current situation.”
The market was rumored to be expecting a drop in prices in the coming week, as market participants remained unwilling to accept higher offer levels and mills struggled to maintain these increased prices.
Platts assessed Northwest European HRC at Eur545/mt ex-works Ruhr Oct. 11, down Eur5 on the day.
Offers were reported at Eur590/mt EXW Ruhr, while tradable values were reported at Eur540-550/mt EXW Ruhr. A tradable value for volumes of 10,000 mt and above was reported at Eur520/mt EXW Ruhr.
Platts assessed domestic HRC in Southern Europe at Eur545/mt EXW Italy, stable on the day. No offers, bids, deals or tradable values were reported.
Meanwhile, activity on the import market remained low as antidumping investigations continued. The gap between import prices and domestic European mill offer levels has decreased, making buying imports an even less attractive option.
Platts assessed imported HRC in Northwest Europe at Eur530/mt CIF Antwerp, down Eur5 on the day.
Platts assessed imported HRC in Southern Europe at Eur535/mt CIF Italy, stable on the day.
