European hot-rolled coil prices remained stable May 8 as the domestic and import markets faced pressure.
“The market is pretty depressed, we’re probably going to see some price drops from the domestic guys, and on the imports as well,” a trader said.
There is also growing skepticism over the implementation of a Carbon Border Adjustment Mechanism and whether it will be delayed, with one trader confused over its impact on the domestic market. The same trader cited, however, that it would cause the import market to become quieter.
The source also highlighted the market’s reluctance to accept carbon credits, saying it’s an extra risk that the market is not ready to deal with yet.
Demand for European HRC remains relatively low, and a trader source does not expect much material to be custom-cleared in December due to weak demand.
On imports, a deal was heard coming from Algeria at $600/mt CFR Italy.
Platts, part of S&P Global Commodity Insights, assessed HRC ex-works Italy at Eur620/mt and HRC CIF Southern Europe at Eur530/mt, both stable with May 7.
Platts assessed HRC in Northwest Europe at Eur645/mt EXW Ruhr May 8 and imported HRC in Northern Europe at Eur540/mt CIF Antwerp May 8, both stable with May 7.
