European domestic hot-rolled coil prices saw further signs of weakness on May 22, as the market continues to grapple with weakening demand and increasing uncertainty.
“Everyone expects an ongoing decrease,” said a mill source, summing up the sentiment that continues to weigh on the European hot-rolled coil market.
The source also added that the current downward price trend is due to reduced offers by the market leaders.
“The only thing is the market leader reduced offers and took orders below their target, they had 10 months of high prices, and pushed down 50-70 euros in one week,” said the mill source. “Now they don’t give discounts anymore for July/August delivery.”
Tradable values were heard May 22 at Eur620-640/mt while a second-hand deal was heard at Eur630/mt.
Resistance is being put up by mills that are trying to set a floor price.
“Mills are trying to hold the line, but the real risk is still ahead, especially if spot demand stays this weak,” said a distributor source.
In Italy, prices decreased day over day as sources cited tradable values at Eur610-620/mt ex-works Italy.
“In Italy, HRC is being talked closer to Eur610/mt, with some re-rollers quoting Eur610-620/t ex-works,” said a distributor source.
On imports, the distributor source also cited weakening import prices, which continue to put pressure on the domestic market.
“Import offers (e.g., Indonesia at Eur505–515/mt CIF) continue to pressure domestic prices. So we’ve moved a bit below the earlier Eur640/620 levels,” said the distributor source. “This week, we see that HRC import offers to Antwerp have softened slightly.”
Import offers were reported at Eur540/mt CIF Antwerp for material originating from Indonesia, Vietnam, India and Turkey.
Platts assessed domestic HRC in Northwest Europe at Eur630/mt ex-works Ruhr, stable day over day, and in Southern Europe at Eur610/mt ex-works Italy, down Eur5 day over day.
Platts assessed imported HRC in Northern Europe at Eur535/mt CIF Antwerp, and in Southern Europe at Eur525/mt CIF Italy, both stable day over day.
