European HRC market remains quiet; expectations mixed

The European market for hot-rolled coil remained quiet on Friday August 23 amid the continuing summer holiday lull, sources have told Fastmarkets.

Demand remained low, with most market participants expecting that trading would pick up in September.

Mills in Northern Europe were heard offering HRC at €620 ($690) per tonne ex-works, Fastmarkets understands. However, producers were inclined to decrease the price of firm bids.

Some deals were heard at €580-590 per tonne ex-works.

Industry sources estimated the tradeable market level at €590-620 per tonne ex-works.

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €601.83 per tonne on Friday, down insignificantly by €0.67 per tonne from €602.50 the previous day.

The index was down by €8.67 per tonne week on week and by €26.42 per tonne month on month.

“The prices have plateaued. Hopefully, the market activity will peak in the next few weeks, and some price rebound could be observed,” an industry source told Fastmarkets.

However, according to a distributor source, production cuts should be made to balance the market.

“Even if there are less imports, demand [in Europe] remains weak,” the source said.

Despite that, there were rumors that mills are planning to increase HRC prices for October by €30-50 per tonne.

In Southern Europe, Fastmarkets calculated its corresponding daily steel hot-rolled coil index, domestic, exw Italy at €600.00 per tonne on Friday, unchanged from the previous day.

The index was down by €7.50 per tonne week on week and by €21.25 per tonne month on month.

Most market participants in Italy were still taking summer holidays, with trading in the region close to zero.

The sole Italian integrated mill producing HRC is expected to return to the market next week and offer fresh price levels.

The most recent offers were heard at the end of July at €640-650 per tonne delivered, which would net back to €630-640 per tonne ex-works.

Buyer sources estimated the workable price at €590-610 per tonne ex-works.

In terms of imports, Turkish HRC was heard offered to Italy at €570-580 per tonne CFR, including the anti-dumping duty.

Published by: Darina Kahramanova

fastmarkets.com