EU HRC prices stable, buyers hold back from restocking

European domestic hot-rolled coil prices were unchanged day on day March 30, with distributors avoiding booking significant volumes, market sources said.

That approach by buyers has been driven by an uncertain outlook for demand and prices in the third quarter.

Platts assessed domestic HRC prices in Northwest Europe at Eur860/mt ex-works Ruhr March 30, stable on the day.

Deals for smaller lots of coils were heard at Eur850-870/mt ex-works Ruhr. Market sources estimated achievable prices at Eur840-870/mt ex-works Ruhr.

German steelmakers were preparing to increase spot offers to about Eur900/mt ex-works Ruhr. A Northwest European mill was already heard at Eur900/mt delivered.

Domestic prices have been supported by tight supply and long lead times. Most Northwest European mills have been offering June-July delivery coil, market sources said. Technical issues at certain steel plants and planned maintenances have further reduced availability.

“The mills claim they are fully booked until June, there is some alternatives from Italy or Central Europe,” a service center said.

Buyers have been showing increased interest in imports, as lead times are closer to those from European mills.

Asian suppliers, however, have controlled volumes offered to Europe due to concerns about possible anti-dumping measures, market sources said.

Demand from the automotive industry has been growing, according to market sources.

Distributors have been focused on back-to-back sales as they try to keep stock levels stable.

Platts assessed domestic HRC prices in South Europe unchanged on the day at Eur850/mt ex-works Italy March 30. Latest deals were reported at Eur850/mt ex-works Italy.

Platts is part of S&P Global Commodity Insights.

— Maria Tanatar