European hot-rolled coil prices remained stable Nov. 25, as sources cited reduced liquidity and buying interest at the outset of the week.
Referring to competition in the market, and the wider offer spread seen in recent weeks, a mill source said that “it is very difficult to sell at these new lower offer prices as they are not workable for us but because market demand is so weak, everyone is fighting for the last tonnage.”
Platts assessed Northwest European HRC at Eur555/mt ex-works Ruhr Nov. 25 stable on the day. Offers were reported in a range of Eur555-600/mt ex-works Ruhr on the day.
“Expectations for higher prices following the Euroblech trade fair have not materialized, and both construction and automotive sectors are not showing signs of improvement,” a distributor said. “Customers have bought all they need for Q1, but consumption has just been restocking activity, so there is a massive imbalance in supply and demand.”
The same source referred to recent volatility in exchange rates and higher domestic stock levels as further reducing the viability of the import market.
Platts assessed imported HRC in Northwest Europe at Eur530/mt CIF Antwerp Nov. 25, unchanged on the day.
“Everyone is in wait-and-see mode and there is no activity. January is sold out for many mills, and nobody is asking for additional quantities,” a German service center source said.
“The need for decarbonized metal has gone to zero and many of our customers have much bigger problems than decarbonization at the moment,” the service center source said when asked about the viability of an additional premium for carbon-accounted metal.
A Southern European trader cited similar variables affecting Italian HRC markets. The trader referred to “way higher prices from Asia” that were unworkable for traders in the market, and that strong domestic availability was adding further downward pressure to prices.
Platts assessed domestic HRC in Southern Europe at Eur550/mt EXW Italy, stable on the day.
Imported HRC in Southern Europe was assessed at Eur525/mt CIF Italy, stable on the day.
Platts is part of S&P Global Commodity Insights.
