Trading remained slow in the European steel hot-rolled coil market on Monday June 26 amid persistently depressed end-user consumption, sources told Fastmarkets.Buyers opted to book material on a hand-to-mouth basis, resulting in limited restocking demand, sources said.
Despite current weak market conditions, sources were optimistic that demand would begin to improve during July.
Fastmarkets’ daily steel HRC index, domestic, exw Northern Europe was calculated at €672.50 ($732.70) per tonne on June 26, down by €0.80 per tonne from €673.30 per tonne on June 23.
The latest calculation of the Northern European index was down by €12.25 per tonne week on week, and by €78.33 per tonne month on month.
Buying activity remained quiet on Monday in the Northern European HRC market. Further significant future price drops remain unlikely however, sources told Fastmarkets.
“Demand remains slow, and customers prefer to maintain medium-to-low levels of stocks,” a trader source in the region said.
“Negotiations for contracts for the second half of 2023 are still pending, so the market remains in wait-and-see mode,” he added.
Buyers’ estimates of tradeable values were in the range of €670-680 per tonne ex-works.
Fastmarkets calculated its daily steel HRC index, domestic, exw Italy at €646.25 per tonne on Monday, down by €7.50 per tonne from €653.75 per tonne from June 23.
The Italian index was down by €10 per tonne week on week and by €42.50 per tonne month on month.
In Italy, official offers of August- and September-delivery HRC from integrated mills and re-rollers were heard around €630-670 per tonne ex-works, sources told Fastmarkets. Buyers’ estimates of tradeable values were still being reported at €650 per tonne ex-works.
A deal was reported by a buyer at €640-650 per tonne ex-works.
Meanwhile, HRC offers from Asian mills to Italy were heard at around €610-620 per tonne CFR on Monday.
Published by: India-Inés Levy
