Domestic European hot-rolled coil prices held largely unchanged Nov. 28, as market activity slowed due to low restocking requirements from consumers.
“The market is very slow and remains largely unchanged from last week as there is no significant restocking activity,” said a Germany-based mill source. “Customers are accepting small price increases.”
“Both the steel and manufacturing industries in Europe are facing increasing pressures, which require the support of the European Commission to overcome,” said the source, adding that European steel mills need more time and support from the government at a time where “the competitiveness of Europe is at stake.”
A slight improvement in automotive demand was highlighted as a key reason the spread between HRC and HDG has gradually widened again.
“Automotive demand is improving slightly,” the source said.
Weak demand and poor market sentiment since the announcement by a large European car manufacturer of potential factory closures and layoffs contributed to a narrowing in the spread between HRC and HDG prices over the past few weeks.
Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr on Nov. 28, stable on the day.
Offers were reported at Eur560-610/mt ex-works Ruhr.
“The situation in the European steel industry is critical but improving slightly every day,” said an Italy-based service center source. “Italian service centers need to maintain good relationships with European suppliers as the import market continues to weaken .. Importers are scouting out new import influxes from Indonesia and Turkey.”
Platts assessed domestic HRC in Southern Europe at Eur550/mt EXW Italy, stable on the day.
Platts assessed imported HRC in Northwest Europe at Eur530/mt CIF Antwerp, stable on the day.
Platts assessed imported HRC in Southern Europe at Eur525/mt CIF Italy, stable on the day.
