The domestic prices for European hot-rolled coil were largely stable July 19, as demand for the summer ahead remained weak and supply levels high. Opinion on price recovery continued to be mixed.
“Ever since March, things got very bad,” a service center source said. “There is no optimism [in the market].”
“I don’t think prices will go down anymore,” another service center source said. “If mills fail to raise prices, then the year will be lost.”
Sources said that most of the service centers and stockholders currently operating in the market are well-stocked, and therefore do not need to buy any material in the near term.
Market sources also noted that, due to the new safeguard measures and the potential prolonged holiday period for mills, lead times for delivery might increase, adding to overall concerns around the European flat steel industry.
“I am worried about the industrial situation in Europe,” a service center source said. “We are not competitive any longer.”
Platts assessed Northwest European HRC at Eur625/mt ex-works Ruhr July 19, up Eur5 on the day. Tradable values were reported at Eur620-630/mt EXW Ruhr.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe stable on the day at Eur625/mt EXW Italy July 19. Tradable values were reported at Eur620-630/mt EXW Italy, and offers were reported at Eur630-640/mt EXW Italy.
Geraint Moody | Devbrat Saha