The European hot-rolled coil market remained weak Sept. 27, as restocking activity was low amid elevated inventory and reduced end-user demand.
Market participants expressed hope in the fourth quarter of 2024, with long-term contract negotiations with automotive companies and preparations for the first quarter of 2025. The automotive industry has been hit by worsening macroeconomic conditions and fierce competition from Chinese producers, sources said.
“There is very poor demand, underlined by the automotive industry situation. There is a lot of uncertainty about EVs, and high pressure from imports. Raw material prices have gone down, but still not enough to compensate for such low prices,” a source at a Germany-based service center said.
“Q4 will be an interesting quarter, with the upcoming negotiations with automotives, but stockholders are focused on cashflows for now,” the source added.
Market participants had mixed opinions on whether prices have bottomed out, with some sources expressing optimism that current levels are at least close to or at the bottom.
However, an Italy-based distributor said end-user demand remains low and does not expect any change until the end of the year.
Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr Sept. 27, up Eur5 on the day. A deal was reported at Eur570/mt delivered Germany, and tradable values were reported at Eur530-Eur560/mt ex-works Ruhr.
Meanwhile, Platts assessed domestic HRC in Southern Europe at Eur535/mt EXW Italy, down Eur5 on the day. Tradable values were reported at Eur530-Eur540/mt EXW Italy.
Sources said current imported HRC prices were not relevant due to comparable domestic prices. The added risks around antidumping investigations, safeguard duties and longer lead times further dampened interest in imports.
Platts assessed imported HRC in Northwest Europe at Eur520/mt CIF Antwerp, down Eur5 on the day.
Meanwhile, Platts assessed imported HRC in Southern Europe stable on the day at Eur525 CIF Italy.
