European HDG prices decline on weak demand

Domestic prices for hot-dipped galvanized coil were down Eur10/mt in Northern Europe and down Eur25/mt in Italy on the week to Nov. 2 due to low demand.

Platts assessed domestic hot-dipped galvanized coil at Eur810/mt ex-works Ruhr based on tradable values reported at Eur790-830/mt ex-works Northern Europe.

In Italy, tradable value for HDG has been reported at Eur760-770/mt ex-works. Taking into account the lack of transactions in the market, Platts assessed Southern European domestic HDG prices at Eur795/mt ex-works Italy, the midpoint of last week’s assessment and achievable prices reported.

Negative sentiment continued to plague the market toward the year’s end. Distributors struggled to reduce inventories as end-consumers were also unwilling to settle large tonnage deals on low demand.

“Not a lot of mills offering for first quarter coil,” an Italian trader said. “They are trying to follow the market as the price evolves, and they focus on filling their order book right now for the fourth quarter. Next round they will try to go up with the price.”

Mills refrained from offering clear prices for first-quarter delivery next year. In the meantime, buyers have been expecting mills to push up first-quarter delivery prices amid lower energy costs.

Platts assessed North European CRC unchanged on the week at Eur780/mt ex-works Ruhr.

A distributor reported tradable values at Eur770-800/mt ex-works Ruhr. A service center source reported tradable values at Eur770-800/mt ex-works Northern Europe.

Platts assessed Southern European CRC down Eur25/mt week on week to Eur775/mt ex-works Italy, reflecting achievable prices reported at Eur750-800/mt ex-works Italy.

Platts is part of S&P Global Commodity Insights.

— Anqi LiuMaria Tanatar