In Europe, domestic prices for hot-rolled coil saw some minor downward movement July 3, as market sources prepare for a quiet summer ahead.
The current muted activity in the coils market is being caused by a combination of low demand and high levels of stock, with some participants testing the market at higher offers, according to market sources.
“Demand is extremely low,” a trader said.
“Stock levels are still quite high.” a service center source said.
Some Southern European sources have also commented on the incoming Italian public holiday period in August, where several participants will be less active.
“[In August] not working during this period so there will not be any movement.” a trader said.
The announcement this week of the new EU import quotas has also been a talking point for the market. Participants have seen a shift in imports to countries outside the quota, such as South Korea and Saudi Arabia. However, these are for larger tonnage levels where economies of scale are present, market sources said.
“From June up until now the prices have been very weak,” a trader said. “I think for the quotas there will be some increase in European prices.”
Platts assessed Northwest European HRC at Eur625/mt on July 3, down Eur4/mt on the day. Meanwhile, Platts assessed domestic HRC prices in South Europe at Eur625/mt ex-works Italy, down Eur5/mt on the day.