European domestic hot-rolled coil prices showed a fragmented trend at the start of the week, with values in Northern Europe retreating under prolonged buyer caution, while the Italian market firmed slightly on confirmed transactions.
In Northern Europe, trading activity remained muted on Monday, with market participants reporting sluggish downstream demand.
“We have absolutely no demand, I think this will not change before the end of the year,” one buyer source said, pointing to persistently weak consumption. “Inflation is very high and activity from customers is very low.”
A seller source agreed that buyer appetite has yet to recover, despite some positive economic indicators in Germany.
“We see on the demand side no major activities on restocking,” the seller told Fastmarkets, adding that “the market is very cautious.”
In terms of workable level, one buyer indicated the market within the range of €730-740 ($847-858) per tonne ex-works.
A second buyer told Fastmarkets workable levels were at €740-750 per tonne ex-works. The same source also reported mill offers between €770-780 per tonne ex-works, which were excluded from the index calculation due to a lack of buying interest at those levels.
A third buyer indicated offer levels at €760 per tonne ex-works. These were also excluded due to a lack of buyer interest.
Meanwhile, a seller source estimated tradable levels within the range of €730-740 per tonne ex-works. They added that a leading European producer was offering material at €750-760 per tonne ex-works. That offer was excluded from the assessment due to a lack of buying interest.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €737.50 per tonne on Monday September 14, down by €7.50 per tonne from €745 per tonne on September 11.
The index was down by €5.00 per tonne week on week, but up by €18.75 per tonne month on month.
In Italy, trading activity showed signs of picking up at the start of the week as buyers returned from the summer break. One buyer reported confirmed transactions taking place within the range of €735-740 per tonne ex-works, with domestic mills already beginning to push offers and price targets higher amid tightening local availability and ongoing supply uncertainties surrounding the Taranto steelworks. The market participant said that mills were offering material at €750 per tonne ex-works, but buyers were showing no interest.
The firmer market sentiment in Italy follows a decision late last week by the Court of Appeal of Milan, which upheld the shutdown order for the hot-end area at the former Ilva works in Taranto by October 28.
Meanwhile, Metinvest’s Ferriera Valsider re-rolling facility has yet to return with commercial HRC offers following its restart. Consequently, procurement options for Italian buyers remain limited, leaving the domestic market at risk of having only a single active coil supplier.
Elsewhere, mill offers were heard at around €720-730 per tonne ex-works for October delivery, against buyer price targets heard closer to €700 per tonne ex-works. Both indications were excluded from the assessment, however, as mills were unwilling to sell at the buyer’s targeted level and no other market participants confirmed viable offers or workable business at those levels.
Fastmarkets’ latest daily steel hot-rolled coil index domestic, exw Italy was calculated at €736.25 per tonne on Monday September 14, up by €1.25 per tonne from €735 per tonne on September 11.
The index was up by €8.75 per tonne week on week and up by €22.50 per tonne month on month.
