“Demand is still weak, with no improvement expected,” a service center source said. “Buyers very cautious due to the new safeguard rules.”
Some mills have used proposed changes to the existing safeguard measures to push their offers higher. However, there has been no improvement in market fundamentals, sources said.
“Price increase does not reflect demand,” another service center source said. “Real demand remains unchanged.”
The European Commission said May 30 that it was considering a 15% cap for a single country over the Tariff Rate Quota volume for HRC initially available in each quarter. European authorities are scheduled to announce definitive measures by June 30. As HRC imports from Japan, Taiwan, Vietnam and Egypt are likely to be reduced as a result of the proposed changes, European buyers will have to substitute the material with either European coil or alternative non-EU suppliers that do not have a country-specific quota.
Platts assessed domestic prices for HRC in Northwest Europe stable on the day at Eur640/mt ex-works Ruhr.
A service center source reported offers and tradable values at Eur615-620/mt delivered Germany. The level could not be confirmed with other market participants. No deals were heard.
Platts assessed domestic prices for HRC in South Europe stable on the day at Eur635/mt EXW Italy June 10.
Offers were reported at Eur635/mt ex-works Italy.
In addition, scheduled maintenances at EU mills during the summer would provide some support to the prices.
