European HRC prices remain steady amid lackluster demand

Prices for domestic European hot-rolled coil remained steady on Aug. 28 amid lackluster demand and no signs of a price recovery.

“Offers are the same,” a service center source said. “I don’t see it getting any better.”

Market participants continued to express uncertainty around the outlook of the market. While some downturn in demand is normally expected in the summer months, sources remained worried that there have been no signs of a rebound in activity or demand, despite people returning from holidays.

“We reached a point that is not a typical summer,” a second service center source said. “That is what I hear from [all market participants.]”

Sources also remained unsure about mills’ reaction to current market conditions. Some are of the opinion that the solution at hand is to reduce capacities to restore equilibrium to the market, while others believe there is still room for prices to decrease as domestic mills compete with import prices that are becoming increasingly competitive.

Platts assessed Northwest European HRC at Eur595/mt ex-works Ruhr Aug. 28, stable on the day.

Offers were reported at Eur595-600/mt ex-works Ruhr, and at Eur625/mt DAP NWE.

Tradable values were reported at Eur590/mt ex-works Ruhr, and at Eur595-605/mt ex-works NWE.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur595/mt ex-works Italy Aug. 28, also stable on the day.

Tradable values were reported at Eur595/mt ex-works Italy.

Consumer interest for imported material remained at a crossroads, with many not prepared to take on the risk of safeguard measures and the subsequent duties involved, market sources said. However, some mills in Asia have started offering to pay up the safeguard duties, making such imports much more competitive.

“Nowadays nobody knows what is going to happen with [Asian] countries import quota,” a distributor source said.

Platts assessed imported HRC in NWE stable on the day at Eur559/mt CIF Antwerp.

Offers for China-origin material were reported at Eur560/mt CFR Antwerp, including antidumping duties. Offers for Vietnam-origin material were reported at Eur550/mt CFR Antwerp.

Meanwhile, Platts assessed imported HRC in South Europe stable on the day at Eur565/mt CIF Italy.

Geraint Moody | Devbrat Saha

spglobal.com