Domestic prices for hot-rolled coil in Europe have been stable on July 31 as the market entered a traditional slow period.
Sentiment in the market has remained largely downward due to low demand from the construction industry and a negative outlook for steel consumption by carmakers.
“Demand remains the issue and it would not be solved by lower prices – the buyers would not buy more at any prices if they understand that their customers do not need material,” a European trader said.
Lower availability of imported coil combined with the effects of summer maintenances at European mills might partially offset the negative factors, sources said.
Safeguard quotas for Other Country and South Korea origin have been almost filled, making the cheapest material unattractive for the EU buyers due to risks related to safeguard duty.
Platts assessed domestic prices for hot-rolled coil in Northwest Europe unchanged on day at Eur645/mt ex-works Ruhr on July 31.
The assessment was based on tradable values estimated by market sources at Eur640-650/mt ex-works Ruhr.
Platts assessed domestic prices for hot-rolled coil in South Europe at Eur635/mt ex-works Italy on July 31, stable on day.
Tradable values have been reported at Eur630-650/mt ex-works Italy.
Platts is part of S&P Global Commodity Insights.
Author Maria Tanatar