Production cuts played a key role in the mood change in the market. The mills have introduced substantial production cuts and stopped blast furnaces across Europe.
Although real demand remained slow, distributors needed to restock as they had been avoiding purchases over the past month, sources said.
“Current price rise is not driven by economic situation or end user steel consumption, production cuts made the price recovery possible,” a service center said.
In addition, the steelmakers needed to increase coil prices to cover rising production costs.
Platts assessed domestic prices for hot-rolled coil in Northwest Europe up by Eur5/mt on day to Eur650/mt ex-works Ruhr on Nov. 3.
Tradable values have been heard at Eur610-660/mt ex-works Ruhr.
Deals for minor tonnages have been heard in Northwest Europe at Eur660/mt ex-works, but they were excluded from the assessment as the information has not been confirmed for Ruhr area.
The region’s mills have been offering first quarter rolling coil at Eur680-700/mt ex-works Ruhr.
Platts assessed domestic prices for hot-rolled coil in South Europe up by Eur10/mt on day to Eur640/mt ex-works Ruhr on Nov. 3.
Italian mills have been offering HRC at Eur650-680/mt delivered, no deals have been heard.
Platts is part of S&P Global Commodity Insights.
Author: Maria Tanatar