Domestic prices for European hot-rolled coil remained largely stable in a weak market, with buyers avoiding building inventory amid low end-user demand.
“Demand is low,” a service center source said. “I hope there will be an increase [in prices], but it is unlikely.”
“This is a very weak summer,” another service center source said. “We haven’t seen this for many years.”
Sources also mentioned that mills are attempting to further cut prices to entice any level of demand, hoping to fill order books. If mills are not able to find orders by the time market players return from summer holidays, they may encounter financial difficulties, market sources said.
“At the moment mills are getting desperate to get orders,” a service center said. “I am not convinced mills can make money.”
“Demand and supply just not there.” another service center source said. “Mills’ orderbooks for September and October don’t look very good at the moment.”
Platts assessed Northwest European HRC at Eur605/mt ex-works Ruhr Aug. 14, stable on the day.
Tradable values were reported at Eur595-620/mt.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur605/mt ex-works Italy Aug. 14, down Eur5/mt on the day.
Tradable values were reported at Eur595-610/mt, with larger tonnages reported at Eur600/mt.
Geraint Moody | Devbrat Saha
