Domestic prices for European hot-rolled coil remained stable June 24 on low demand and muted activity in the market.
“Market has been quiet because inventories are high,” a service center source said. “Everybody is looking for orders and consumption is low.”
Platts assessed Northwest European HRC stable on the day at Eur635/mt June 24.
Sources said that a lack of production cuts has put pressure on mills, whose margins have diminished.
“Capacities are not being reduced,” the service center source added. “There is a lot of pressure from the production side, and there is no margins for mills.”
A similar environment persisted in South Europe, with poor demand and negative market sentiment.
“Demand is very poor, and no improvement is expected anytime soon,” an Italy-based distributor source said.
Platts assessed domestic prices for HRC in South Europe stable on the day at Eur619/mt EXW Italy June 24.
Interest in imported HRC remained dull in light of the changes to the safeguard measures.
EU member states approved June 11 the European Commission’s proposal to extend the bloc’s steel safeguard measures.
The EU steel safeguard measures will start on July 1 with a new restriction cap of 15% on six countries that used to ship their HRC under the residual tariff-rate quota. As HRC imports from Japan, Taiwan, Vietnam and Egypt will likely be reduced as a result, Europe-based buyers will have to substitute the material with either European coil or alternative non-EU suppliers without country-specific quotas.
Platts assessed imported HRC in Northwest Europe stable on the day at Eur609/mt CIF Antwerp.
Meanwhile, Platts assessed imported HRC in South Europe stable at Eur595/mt CIF Italy, down Eur5 on the day.
Offers for Asia-origin and Turkey-origin material were reported at Eur600/mt CIF Italy.
Buying interest for carbon accounted HRC was heard to remain muted as well. Platts assessed the carbon-accounted premium for HRC in Europe at Eur125/mt June 24, unchanged on the day.
Devbrat Saha