European HRC prices remain stable amid muted activity due to holidays

Domestic prices for European hot-rolled coil remained stable on Aug. 19, as the market activity remained limited due to the holiday season in most European countries.Market participants remained unsure about the movement of prices, given the current volatility and uncertainty over the future of the industry. Low demand, import quotas and higher levels of freight are some of the factors that beset the industry, sources said.

“Uncertainty is ruling the market,” a service center source said. “We will see in the next week how the market reacts.”

Furthermore, market participants remained uncertain whether the end of holidays, particularly in Southern Europe, will cause any significant changes to the market.

“The problem in the South is that most mills are on holidays, so not very active,” the same service center source said. “I don’t expect something to happen by next week.”

Mills are still struggling to fill orderbooks amid constant excess supply and low demand, with the automotive sector continuing to buy from service centers.

Market sources had a negative outlook on green steel in the next few years. The current asking prices for premiums have been deemed too high for the market, sources said.

“It remains crazy to have to pay a premium [for green steel],” the same service center source said.

Platts assessed Northwest European HRC at Eur605/mt ex-works Ruhr on Aug. 19, stable on the day.

Tradable values were reported at Eur595-600/mt and Eur620/mt delivered Germany.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur600/mt EXW Italy on Aug. 19, stable on the day.

Geraint Moody | Devbrat Saha