Domestic European hot-rolled coil prices remained largely stable Jan. 30, despite a combination of seasonal restocking, limited import interest, and ongoing uncertainty surrounding safeguard measures supporting the domestic market.
Market participants noted a continued low level of interest in imports, with many buyers opting for domestic products despite concerns over price hikes.
“There is very little import interest, partly due to the prospect of higher duties and the current price disparity with domestic offers,” a distributor source said.
Other sources cited concerns over the longer delivery times for imported material as a key factor in the decision to favor European mills.
The lack of viable import options is contributing to the upward pressure on domestic prices, as mills focus more on securing long-term contracts rather than spot orders.
“Seasonal restocking has given domestic prices some momentum, but mills are more focused on securing longer-term deals,” another distributor source said.
While orderbooks of domestic mills are looking good, concerns about demand remain.
“If demand does not pick up soon, we could see price declines, regardless of the import quota situation,” a Germany based service center source said. “The European Commission’s investigation into imports is creating uncertainty, with the outcome of the safeguard measures remaining unclear.”
The impact of geopolitical tensions, particularly surrounding the potential for increased US tariffs on European imports, continues to add to market uncertainty.
“Geopolitical issues, particularly with the US, are creating confusion,” a Southern Europe-based trader said. “However, if the situation with Russia and Ukraine were to be resolved, it could drastically improve the outlook.”
Looking ahead, there is a sense of caution among buyers.
“We are not restocking too much at the moment,” another service center source said. “The outlook for the next three months remains uncertain, so we are not willing to take risks.”
The automotive sector, a key driver of demand in Europe, continues to face challenges, with some sources pointing to declining output figures, particularly in Germany.
Platts assessed the North European domestic HRC price at Eur590/mt ex-works Ruhr, stable on the day, while the Southern European domestic HRC price also remained stable at Eur585/mt ex-works Italy.
Platts assessed imported HRC prices in Northwest Europe at Eur545/mt CIF Antwerp, down Eur5 on the day, while Southern European imports were assessed at Eur545/mt CIF Italy, up Eur5 on the day.
Platts is part of S&P Global Commodity Insights.