Northwest European mills offer further discounts to secure summer volumes

Hot-rolled coil prices in Northern Europe continued a downward trend Aug. 8 as German mills offered discounts on official offers to secure volumes in the holiday period.

S&P Global Commodity Insights assessed hot-rolled coil in Northwest Europe down Eur10/mt on the day at Eur790/mt ex-works Ruhr.

While service center sources described official offer levels as relatively stable at Eur840-870/mt ex-works Northern Europe, the actual tradable range sat much lower, with unconfirmed deals heard as low as Eur770/mt ex-works Ruhr.

A trader source said mills were targeting a price level of Eur800-820/mt delivered Northern Europe, the equivalent of Eur750-760/mt ex-works Ruhr on longer distance deals. Deals within Germany sat higher on the Eur750-800/mt tradable range.

The German market was heard as “silent,” due to regional holidays, with activity in the Italian market diminishing.

“There is no trade, production, or indeed market, in Italy,” said the trader.

Achievable prices in Italy were cited stable at Eur780/mt ex-works Italy, recent indications for the Italian market have ranged from Eur750-790/mt ex-works, with no transactional activity heard due to ongoing holidays and capacity reductions.

HRC in South Europe was assessed stable on day at Eur770/mt ex-works Italy, according to S&P Global Commodity Insights data.

— Benjamin Steven, Maria Tanatar