Problem is not the price level, is extremely low demand

Domestic prices for European hot-rolled coil remained unchanged on June 13 as market demand remained subdued.

“Problem is not the price level,” a trader source said. “Problem is extremely low demand.”

Sources said that some mills are under maintenance during the summer and are selling very small quantities of hot-rolled coil.

“We’re selling very small quantities,” a mill source said. “Till end of August, our mill is in maintenance. We have booked quantities until end of August.”

Platts assessed domestic prices for HRC in Northwest Europe stable on the day at Eur625/mt ex-works Ruhr on June 13.

Offers were reported at Eur650/mt EXW Ruhr. Tradable values were heard at Eur620-640/mt EXW Ruhr.

Meanwhile, Platts assessed domestic prices for HRC in South Europe stable on the day at Eur625/mt EXW Italy on June 13.

Offers were reported at Eur630-640/mt EXW Italy.

Interest in imported HRC remains dull due to longer lead times and the proposed changes to the safeguard measures.

EU member states approved June 11 the European Commission’s proposal to extend the bloc’s steel safeguard measures.

The EU steel safeguard measures will start on July 1 with a new restriction cap of 15% on six countries that used to ship their HRC under the residual tariff-rate quota. As HRC imports from Japan, Taiwan, Vietnam and Egypt will likely be reduced as a result, Europe-based buyers will have to substitute the material with either European coil or alternative non-EU suppliers without country-specific quotas.

Sources said that prices will rise in the short to medium term due to the new measures but expected European mills to compensate for the shortfall in imports.

“Prices will rise in the short-medium term because of supply tightness,” a trader source said.

“Countries would initially exceed the 15% cap, however, European mills are more than capable of handling it,” a mill source said. “The most important issue is the real production rate in EU.”

Platts assessed imported HRC in Northwest Europe stable on the day at Eur720/mt CIF Antwerp.

An offer for Vietnam-origin material was reported at Eur580/mt CIF Antwerp.

Meanwhile, Platts assessed imported HRC in South Europe stable on the day at Eur600/mt CIF Italy.

Offers were reported at Eur620-630/mt CIF Italy, while tradable values were reported at Eur610-620/mt CIF Spain.

Devbrat Saha