European hot-rolled coil trading activity remained subdued on August 4, with seasonal holidays keeping many market participants away from their desks and limiting spot purchasing.
Mills in Northern Europe were targeting €715-750 per tonne ex-works, depending on specification, but buyers are not currently interested, sources said, describing demand as weak amid a lack of activity.
“The market is exceptionally quiet at the moment. Most market participants are on holiday and while mills are targeting around €730 per tonne ex-works, there is no urgency among buyers to book material. I cannot remember such a slow summer period,” one buyer in Germany said.
A second buyer source said that there was virtually no buying or selling taking place, that demand remains poor and that most market participants are focused on clearing existing imports and dealing with EU Carbon Border Adjustment Mechanism (CBAM) and safeguard-related requirements, rather than purchasing new cargoes.
“The market is effectively waiting for September,” the second buyer source added.
Market participants still in the market provided indications of tradable level at around €710-740 per tonne ex-works, depending on specification, with most hovering around €710-720 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €716.25 ($825.14) per tonne on August 4, down by €1.25 per tonne from €717.50 per tonne on August 3.
In Italy, meanwhile, the most recent HRC offers came in at €710-715 per tonne ex-works with the tradable level estimated at €700-710 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was unchanged at €710.63 per tonne on August 4.
Current activity was said to be slow, although sentiment for September was becoming more positive, sources said.
“Stocks at European ports have fallen significantly, while tighter safeguard quotas and reduced import availability are expected to support the market,” a local buyer said.
