European HRC prices remain largely unchanged despite limited demand

European hot-rolled coil price stayed largely flat on Wednesday October 16, with the bullish sentiment among producers contrasting with the lack of demand and limited imports, sources told Fastmarkets.

Demand turned out to be too limited to support a significant price rebound, Fastmarkets understands.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €555.00 ($604.81) per tonne on Wednesday, up by just €0.62 per tonne from €554.38 per tonne on Tuesday.

The index was up by €9.00 per tonne week on week, but down by €11.42 per tonne month on month.

Mills in Northern Europe were heard offering HRC at €580-600 per tonne ex-works, but were also willing to grant a discount of €15 per tonne for firm bids, sources said.

Some producers in the region were not satisfied by the current demand and offered HRC at levels from about two weeks ago at around €540 per tonne ex-works, a buyer source told Fastmarkets.

Most buyers estimated the tradable market level at €540-550 per tonne ex-works.

“I do not think that anyone will book at €580-590 per tonne ex-works. There are currently not enough negotiations and deals to gain a clearer perspective on the real market price,” a second buyer source told Fastmarkets. “Besides, consumers do not usually book much for the year’s end.”

The buyer added that most final consumers would probably wait for the beginning of 2025 to see how HRC prices develop.

But some Northern European market participants said price increases were imminent.

“Soon we will see prices at around €590 per tonne ex-works. Apparent demand is currently stable, but end users are buying more domestic [HRC] because of the anti-dumping investigations against imported HRC from some origins and the [generally] higher import prices,” a third buyer source told Fastmarkets.

In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €551.67 per tonne on Wednesday, up by €2.92 per tonne from €548.75 per tonne a day earlier.

The Italian index was up by €11.34 per tonne week on week, but down by €17.08 per tonne month on month.

Sources reported an offer from one local supplier at €580 per tonne ex-works, but added that discounts of €15-20 per tonne were possible for big volumes.

Buyer sources estimated the workable market level at €540-560 per tonne ex-works.

A fourth buyer source told Fastmarkets that deals for HRC in the Italian market had been few and far between recently, adding that the bullish sentiment will  gradually start to fade because real demand remains insufficient.

“Buyers are not willing to pay significant price increases,” the buyer source said.

Imported HRC was on offer at high levels that buyers described as “unworkable.”

Offers from Taiwan, Japan, and South Korea were heard at €580-590 per tonne CFR Italy, while Vietnamese HRC was on offer at €555-560 per tonne CFR Italy, sources said.

And Turkish HRC was on offer to Italy at €580-590 per tonne CFR, they added.

But the workable level for imports was estimated at just €520 per tonne CFR, with some bids heard at that level, but no deals confirmed.

Published by: Darina Kahramanova

fastmarkets.com