European HRC prices remain steady amid slow start to the week

Domestic prices for European hot-rolled coil remained steady July 22, as demand continued to stagnate amid a worsening outlook for the rest of the summer.

“Market is very quiet and there have been no changes since the past few months,” a service center source said. “It will become quieter.”

Market sources said that prices are at or close to the bottom, with mills most likely selling at a loss or break-even level. They also noted that mills will either have to raise prices or reduce output.

“None of the mills are earning any money at these levels, especially in Europe,” a service center source said. “Mills have to increase prices or reduce capacities.”

However, the outlook for the coming months remained bleak, with buyers restocking at low levels to avoid building up inventory, sources said.

“It is very calm,” a trader said. “Everyone is waiting.”

Platts assessed Northwest European HRC at Eur625/mt ex-works Ruhr July 22, stable on the day.

Most tradable values were reported at Eur620-630/mt ex-works Ruhr.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe stable on the day at Eur625/mt ex-works Italy July 22.

Tradable values were reported at Eur625-630/mt ex-works Italy.

Geraint Moody | Devbrat Saha

spglobal.com