European domestic hot-rolled coil prices were stable on May 27 as domestic mills lowered offers in order to maintain order books amid weak spot demand across Europe.
“Nothing is really happening, the mood is changing. Our customers expect prices to go down … It’s getting more difficult because the market leader reduced offer prices by Eur30-40,” said a mill source.
Other sources cited weak demand for the next six to eight weeks and into the summer holidays.
However, one mill source was optimistic that demand would pick up before the summer holiday, sparked by increased infrastructure spending in Germany. The same source acknowledged a weakened automotive industry.
“In Germany, we hope demand will pick up before summer as the country has spent a lot of money on infrastructure, but the automotive [industry] is not in a good shape. For normal volumes, sales are not so well,” a mill source said.
Low offers from Indonesia and Turkey also continue to put pressure on domestic prices. Offers were heard at Eur520/mt CFR Italy, ex-Indonesia and Eur550/mt CFR Italy, ex-Turkey on the day.
Buyers are becoming more wary of long-lead imports as the carbon border adjustment mechanism comes into effect in 2026, with one distributor citing that the market will start feeling the effects in the second half of 2025. One mill source was concerned about the uncertainty regarding its implementation and the impacts on delivery time.
Platts assessed domestic HRC in Northwest Europe at Eur630/mt ex-works Ruhr, stable day over day, and in Southern Europe at Eur605/mt ex-works Italy, stable day over day.
Platts assessed imported HRC in Northern Europe at Eur530/mt CIF Antwerp, and in Southern Europe at Eur520/mt CIF Italy, both stable day over day.
Alexander Wong | Devbrat Saha | Charles Thompson
