European HRC prices inch down amid downward pressure, weak fundamentals

Domestic prices for European hot-rolled coil fell slightly Aug. 30, amid downward pressure and weak market fundamentals.

“Prices are under a lot of pressure,” a distributor source said. “There have been no changes from stockholders and end-users.”

“Market is still quiet,” a trader source said. “And there is a lot of uncertainty as well.”

Sources noted that some change is expected in the coming weeks, but the direction of the market remains unclear, with some expecting prices to fall by as much as Eur50 by the end of the year.

Others have continued suggesting that it remains down to the supply-side of the industry to reduce capacities to boost price recovery.

“Saw a little more activity,” the trader source said. “Expected to see change since all companies are back [from holidays].”

“Activity will not be better, demand will be low,” the distributor source said. “Need to see changes from the supply side, otherwise prices will fall further.”

Furthermore, the European Commission antidumping investigation continues to loom over the market, with some market participants fearing that in the long term there may be supply issues once consumers start avoiding the export countries in question. Some market sources are speculating that Turkey may remain the best alternative option to fill the gap in the market.

Platts assessed imported HRC in Northwest Europe stable on the day at Eur559/mt CIF Antwerp.

Platts assessed Northwest European HRC at Eur590/mt ex-works Ruhr Aug. 30, down Eur5 on the day.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur590/mt ex-works Italy Aug. 30, down Eur5 on the day.

Devbrat Saha | Geraint Moody