EU HRC prices remain stable amid low market activity

Domestic European hot-rolled coil prices remained stable Oct. 17, as low market activity, driven by weak demand from the automotive and construction sectors, kept demand at low levels in the European coil market.

“There is no market” an Italy-based trader said when asked about sentiment in the European flat steel market. “The automotive and construction markets are dead.” This has led some buyers to speculate on how long higher European offer levels can last in an oversupplied market with low levels of real demand.

European mills face a challenging situation as buyers remain wary of price increases, making it difficult to sell material. Oversupply in the market continued pressuring prices, raising doubts about the sustainability of price increases. A Germany-based mill source said the market is “very quiet,” with many stockholders having already filled their inventories for this quarter.

Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr Oct. 17, stable on the day.

Tradable values were reported at Eur550-570/mt EXW Ruhr. No deals, bids or offers were reported.

Platts assessed domestic HRC in Southern Europe at Eur545/mt EXW Italy, down Eur5 on the day.

Tradable values were reported at Eur550-560/mt delivered Italy. Offers were reported at Eur570/mt EXW Italy.

The import market continued to be slow as quotas and anti-dumping investigations made buyers wary of purchasing from overseas.

Platts assessed imported HRC in Northwest Europe at Eur525/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 | Devbrat Saha