EU HRC prices rise due to higher mill offers

Domestic European hot-rolled coil prices rose slightly Oct. 25, as many European mills increased their offer levels following the Euroblech Hannover steel fair, said a Germany-based mill source.

A major European mill is rumored to cut production in the beginning of the first quarter of next year, by temporarily taking one of its blast furnace sites offline, according to sources. The anticipated production cut, along with high import prices, is expected to support higher European flat steel spot market prices, said a Germany-based service center source.

Many European mills reported full order books until the end of the year, according to a Germany-based mill source. The source explained that spot market activity remained low due to weak demand from the automotive industry.

Platts assessed Northwest European HRC at Eur575/mt ex-works Ruhr Oct. 25, up Eur10 on the day.

Offers were reported at Eur580-640/mt ex-works Ruhr. Rejected bids were reported at Eur570-580/mt ex-works Ruhr. Tradable values were reported at Eur560-570/mt ex-works Ruhr.

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

The import market remained weak as the spread between import and European mill offers further narrowed. A Germany-based service center source reported that some import prices were higher than European offer levels.

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.