European HRC market quiet amid depressed end-user consumption

Trading remained “dead” across the European hot-rolled coil market, with buyers opting to wait until October to restock, Fastmarkets heard on Monday September 18.

Depressed demand and bearish sentiment continued to drag on buying.

New import quotas on October 1 could prompt a rebound of imported hot-rolled coil into Europe; buyers opted to remain out of the market until gaining greater clarity on import offers, sources told Fastmarkets.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €637.50 ($679.44) per tonne on September 18, up by €2.62 per tonne from €634.88 per tonne on September 15.

The index was down by €7.50 per tonne week on week, and up by €1.25 per tonne month on month.

Estimations of tradeable values for HRC in Northern Europe were reported by buyers at €630-650 per tonne ex-works on Monday.

Since early September, offers for October- and November-delivery coil in the region have been reported around €640-670 per tonne ex-works. The upper end of the range was considered unfeasible given current market conditions, sources said.

“Restocking continues to be postponed as buyers look to October, when new import quotas begin,” a buyer source said.

Fastmarkets’ calculation of its daily steel hot-rolled coil index domestic, exw Italy was €626.25 per tonne on September 18, up by just €0.25 per tonne from €626 per tonne on September 15.

The Italian index was also down by €11.25 per tonne week on week, and down by €3.75 per tonne month on month.

Demand remained weak in the Italian HRC market on September 18, Fastmarkets heard.

Buyers’ price ideas were around €620-640 per tonne EXW, for October-November delivery.

A deal was reported by a buyer in the region at €620 per tonne EXW.

“The market is dead at the moment,” a second buyer source said.

Offers for imported stock remained scarce on September 18; however, a few offers from Asian-origin exporters were reported at €600-610 per tonne CFR for 2024 arrival, Fastmarkets heard.

Published by: India-Inés Levy

fastmarkets.com