Negative sentiment in European HRC market puts pressure on prices

Prices for European steel hot-rolled coil decreased slightly on Thursday August 8 on negative sentiment about future market developments, sources have told Fastmarkets.

Demand for the material remained low, with trading close to nil due to the summer slowdown, sources said.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €619.02 ($675.97) per tonne on Thursday, down by €0.98 per tonne from €620.00 the previous day.

The index was down by €1.72 per tonne week on week and by €14.73 per tonne month on month.

Mills in Northern Europe reportedly offered HRC for September-October delivery at €630-650 per tonne ex-works.

“However, steel service centers and some mills, which want to clear their stocks, offer the material at €600-610 per tonne ex-works,” a seller source told Fastmarkets.

According to the seller, the market remained quiet and only limited volumes were traded.

Buyers estimated workable prices at €600-620 per tonne ex-works.

“There are few firm offers from mills because no one is asking for material [these days]. There is no demand. The market is absent,” a distributor source told Fastmarkets.

The source estimated that, due to the summer holidays, the need for steel has decreased by about 30% compared with the usual levels.

According to this source, the market direction will be clearer at the beginning of September.

But the seller source hoped that a price rebound would be possible in October-November due to restocking.

According to the seller, the anti-dumping investigation launched by the European Commission against imported HRC from Egypt, Vietnam, Japan and India could also support the expected price rebound.

In Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €618.13 per tonne on Thursday, down by €1.87 per tonne from €620.00 per tonne the previous day.

The index was down by €2.50 per tonne week on week and by €8.12 per tonne month on month.

The Italian market was completely quiet due to the summer holidays, sources said.

Buyer sources estimated workable prices at €600-620 per tonne ex-works.

The latest offers for September-delivery coil were heard in end-July at €640-650 per tonne delivered, which nets back to €630-640 per tonne ex-works.

Local suppliers are expected to attempt a price rise after the holidays, sources said.

The market for overseas coil remained quiet due to the start of the European Comission anti-dumping investigation.

Published by: Darina Kahramanova

fastmarkets.com