European HRC producers remain bullish despite absence of end-user demand

Author Rituparna Nath, Maria Tanatar

European hot-rolled coil producers remained bullish Nov. 20 despite the absence of demand from end-users.

“There is no real demand from end-users and they have healthy stocks and can wait up if mills intend to hike prices,” a service-center source said.

According to another source, mills in Northwestern Europe were aiming to hike offers to Eur700/mt in first-quarter 2024, although no offers were heard at that level yet.

A deal for a smaller volume was concluded at Eur650-670/mt ex-works Ruhr with tradable values heard ranging Eur640-670/mt EXW Ruhr.

Platts assessed the price of Northwestern Europe domestic HRC down Eur5/mt from Nov. 17 at Eur660/mt Nov. 20.

In southern Europe, Italian mills were heard aiming to offer at Eur660-670/mt for deliveries in January.

However, dull demand made market participants skeptical about the sustainability of these price levels.

Platts assessed domestic prices for HRC in South Europe stable from Nov. 17 at Eur645/mt EXW Italy on Nov. 20, reflecting tradable values reported at Eur640-650/mt EXW Italy.

Limited demand was seen coming for imported material amid uncertainty prevailing about safeguard quotas in addition to talks about production cuts.

Platts assessed the import price of HRC in South Europe flat from Nov. 17 at Eur630/mt CIF Italy on Nov. 20, reflecting tradable values heard at Eur620-630/mt.

Platts is part of S&P Global Commodity Insights.