Hot-rolled coil prices have remained stable in the Iberian market so far in October. Demand from major consuming industries, including automotive and renewable energy, is not recovering, market sources tell Kallanish.
“Prices in Spain are high, and buyers are not accepting current offers,” says one distributor. “Centres are reducing their stock and, given the lack of demand, will limit their replenishment volumes, relying on spot purchases.”
Higher HRC prices reflect rising energy costs linked to geopolitical uncertainty, which remains producers’ biggest challenge, a steel processor says.
“Our production and transport costs range from €100 to €120/tonne, pushing the price of processed steel products well above €810/t once cutting, slitting, drilling and other services are included,” he explains. This is putting pressure on customers, who are limiting purchases to small, routine orders. “Although distributors have agreed to reduce their profit margins, the market in general seems to have reached a limit in terms of what price adjustments they are willing to accept, and sales remain mostly limited to small volumes at spot prices,” the source concludes.
Prices have remained broadly stable since the start of the month. Demand from the automotive and renewable energy sectors has yet to recover.
Spanish HRC prices stand at €740-760/t ex-works, while distributors’ levels are surpassing €800/t delivered.
