European HRC demand sentiments pessimistic on September revival

Northern European mills continued to offers discounts to secure volumes Aug. 10, struggling in the minimal demand market.

Market participants reported deals settled at Eur760-770/mt ex-works Ruhr, reinforcing lower workable prices.

The Eur760-770/mt ex-works price level was achievable on bids for larger volumes, with the smaller tonnage deals that have represented the bulk of recent trade sitting higher at around Eur800/mt ex-works.

Platts assessed hot-rolled coil in Northwest Europe down Eur10/mt Aug. 10, at Eur770/mt ex-works Ruhr.

Distribution sources again emphasized a need for certainty in the market on price direction and drivers for demand to recover substantially, though expectations for a September revival were heard as increasingly pessimistic on the day.

“The market just needs some certainty before things start moving again,” said a trader source. “Everyone’s banking on a September revival, but it’s looking increasingly likely that we’ll be in this mess for a while.”

Import offers were heard as stable in the Northern market, with another trader reporting tradable levels stable at Eur720/mt CIF Antwerp.

In Italy, the market was silent on capacity reductions and holiday sentiments, bringing stability to the market on muted trading.

HRC in South Europe was assessed stable day on day at Eur770/mt ex-works Italy.

This brings North and South European HRC price levels into parity for the first time since June 10, 2021, assessed at Eur1,145/mt ex-works Ruhr and Italy, respectively.

Platts is part of S&P Global Commodity Insights.

— Benjamin Steven, Maria Tanatar