Domestic prices for European hot-rolled coil stayed mostly steady as a peak summer season continued to result in very low levels of demand and a pessimistic outlook going forward.
“It is the high season of the holidays now and the market is very quiet,” a service center source said. “I don’t think anything will happen in the next few weeks.”
“No change of the situation due to summer vacation season,” another service center source said.
The market fundamentals for coils remain strained with a combination of significantly low levels of demand and excessive levels of supply. Sources said that mills need to announce production cuts to support prices, which would otherwise fall further.
A large proportion of the strain on the industry comes from the low and sluggish growth within the European automotive sector, which is struggling to compete with its more cost-effective Chinese counterparts, market sources noted.
“Globally, prices are under pressure,” a service center source said. “With competition from Chinese electric cars, it is more or less impossible for domestic automotive producers to sell anything.”
Platts assessed Northwest European HRC at Eur625/mt ex-works Ruhr July 29, stable on the day.
Tradable values were reported at Eur605-630/mt EXW Ruhr.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur620/mt EXW Italy July 29, down Eur5.
Tradable values were reported at Eur610-625/mt.
