Domestic prices for European hot-rolled coil remained stable on Sept. 12, on muted market activity as buyers remained cautious amid expectations of further decreases in prices later in the year.
Additionally, prices seemed to be experiencing more of a downward pressure within Northern Europe amid worsening macroeconomic factors, while Southern Europe remains relatively stable, sources said.
“Booking prices dropping further down,” a distributor source said. “Seems Southern Europe is doing better than Northern Europe right now.”
Sources noted that many consumers were holding off buying any more material in the hopes that prices continued to become more favorable towards the end of the year. Additionally, inventory levels remained high, further dampening demand for domestic material.
“We need to follow booking prices carefully,” the distributor source said. “Customers are still looking where prices are bottoming.”
Platts assessed Northwest European HRC at Eur565/mt ex-works Ruhr on Sept. 12, stable on the day
Offers were reported at Eur570/mt EXW Ruhr.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur570/mt EXW Italy, stable on the day.
Tradable values were reported at Eur570-575/mt EXW Italy.
Platts assessed imported HRC in Northwest Europe stable on the day at Eur559/mt CIF Antwerp and imported HRC in Southern Europe stable on the day at Eur555/mt CIF Italy.
Regarding green steel, prices in Europe continued to fluctuate, particularly as consumers were hesitant to purchase new material at a premium compared to conventional steel.
Faced with the existing pressure in the coils market, green steel has also struggled to attract the necessary demand, especially for the automotive industry, which is facing increasing costs and a lull in demand. As a result, prices for green steel could differ significantly.
“The exact premiums can vary,” the distributor source said. “[It can be] based on demand and regional factors.”
Platts assessed carbon-accounted HRC Ruhr at Eur660/mt EXW Ruhr, stable on the day.
Geraint Moody | Devbrat Saha
