EU HRC prices stable in slow market, sentiment negative

Domestic prices of hot-rolled coil in Europe remained stable on May 22, but weak sentiment prevailed in the market.

The bearish sentiment has been supported by combination of competitive import offers, limited domestic demand from distribution and anticipated availability rise in the EU after the restart of capacities closed for either maintenances or due to technical problems. As a result, buyers have been avoiding booking coil to avoid risks related to expected price drop.

Number of domestic offers, in the meantime, have been limited as Northwest European mills continue to hold back from offering in spot market. The major steelmakers had notified their customers that they had been planning to return to the market in June with offers of September rolling coil.

“Mills continue to negotiate second half of the year contracts and it seems they will not offer in the market until those contracts are settled,” a distributor said. “As soon as they return, prices would drop, buyers have upper hand in such market.”

Platts assessed domestic prices for hot-rolled coil in Northwest Europe unchanged on the day at Eur760/mt ex-works Ruhr on May 22.

The assessment was based on tradable values reported at Eur750-770/mt ex-works Ruhr.

Platts assessed prices for the imported material in the region stable on the day at Eur615/mt CIF Antwerp, based on offers heard at Eur600-630/mt CIF Antwerp.

Platts assessed domestic prices for hot-rolled coil in South Europe at Eur700/mt ex-works Italy on May 22, unchanged on the day.

Official offers have been reported at Eur750/mt ex-works Italy, bids at Eur670/mt ex-works Italy. Market participants estimated achievable prices at Eur700/mt ex-works Italy.

Platts assessed prices for imported hot-rolled coil in South Europe stable on the day at Eur600/mt CIF Italy on May 22, reflecting deals heard in the market for Asian material. Offers of the Far East-origin material have been reported at Eur600-620/mt CIF Italy.

Platts is part of S&P Global Commodity Insights.

Author Maria Tanatar