European HRC prices end week on a steady note

Domestic prices for European hot-rolled coil were assessed flat on Aug. 23 as the market ended on a quiet note, with no sign of recovery for the next few weeks, market sources said.

“There is not that much movement in the market,” one distributor source said.

“Domestic markets are so weak,” a second distributor source said.

Market participants noted that although overall market sentiment remains flat if not slightly negative, there are some market participants, particularly mills, who believe that there may be some price recovery in the market, pushing levels up.

“[Some mills] thinks prices in October will go up by 50 euros or more,” a service center source said.

Market sources reiterated that for any chance of price recovery, mills must persist in reducing production and lowering capacities. This approach will create space for potential inquiries later in the year that could drive prices up.

“I really think production cuts are necessary,” the service center source said. “Even if there are fewer imports, the demand is still weak.”

Platts assessed Northwest European HRC stable on the day at Eur595/mt ex-works Ruhr Aug. 23.

Tradable values were reported at Eur590-610/mt ex-works Ruhr and offers were reported at Eur600-620/mt ex-works Ruhr.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur595/mt ex-works Italy Aug. 23, stable on the day.