Domestic prices for European hot-rolled coil fell slightly Sept. 16, as mills lowered offer levels to stimulate demand.
“Mills are in need of orders,” a service center source said. “Prices are under pressure and it’s not looking very well for the market.”
Uncertainty in prices has kept buyers away from the market, as they would prefer to wait until prices bottom out, sources said. At current price levels, nobody is making money, but the mills cannot cut production now, because buyers will start restocking soon for the beginning of next year, sources said.
“Nobody is making profit,” the source said. “I don’t know how long they will keep these prices. It’s not smart to shut furnaces now, because it takes four to five weeks to shut down and another four to five weeks to start it again. If they shut furnace now, mills lose money, because in November-December, service centers will start restocking for the beginning of next year.”
“Mills not making money despite iron ore, scrap softening,” another service-center source said.
Platts assessed Northwest European HRC at Eur555/mt ex-works Ruhr Sept. 16, down Eur4/mt on the day.
Offers were reported at Eur560-570/mt ex-works Ruhr.
Tradable values were reported at Eur540-570/mt ex-works Ruhr.
In southern Europe, the market remains relatively more stable, however, buying interest remains weak, with most market participants assessing the situation, sources said.
“Buyers are really quiet, and are trying to understand the market dynamics,” an Italy-based service-center source said. “It is difficult to understand the situation at the moment.”
Platts assessed domestic HRC prices in Southern Europe at Eur555/mt ex-works Italy, down Eur10/mt on the day.
Offers from local mills were reported at Eur555-560/mt ex-works Italy.
Interest in imported HRC remains weak, due to concerns around longer lead times and risks of safeguard duties. However, Turkish mills are keeping firm on offer levels, since they have sold a lot of volumes in the last couple of months, sources said.
Platts assessed imported HRC in Northwest Europe at Eur550/mt CIF Antwerp, down Eur9/mt on the day. Imported HRC in Southern Europe was assessed stable on the day at Eur549/mt CIF Italy.
