Sluggish demand and an uncertain outlook continued to limit market activity in the European hot-rolled coil markets on Thursday November 3.Customers, forecasting further price drops, remained in wait-and-see mode, and no rebound in demand was expected in the remainder of this year, sources said.
Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe, at €646.25 ($638.18) per tonne on Thursday, down by €3.33 from €649.58 per tonne on Wednesday.
The latest calculation of the index was down by €11.58 per tonne week on week and down by €103.75 per tonne month on month.
Few deals were reported, and market conditions remained depressed in the HRC market in Northern Europe. Negotiations between automotive companies and mills regarding contracts were continuing, with no finalized deals reported.
Buyers’ estimates of workable prices were reported at €630-660 per tonne exw. One deal was heard by a buyer at €650 per tonne exw.
“There is hardly any buying activity,” one buyer source said. “I do not expect any recovery until the end of the first quarter of 2023.”
Production cuts have not yet affected prices or demand, and further output cuts may be required to boost price levels, sources said.
Fastmarkets’ calculation of its daily steel HRC index, domestic, exw Italy, was €660.00 per tonne on Thursday, up by €5 per tonne from €655.00 per tonne on Wednesday.
The latest calculation of the Italian index was down by €18.13 per tonne week on week and down by €95 per tonne month on month.
Depressed customer sentiment, persistent overstocking and sluggish demand have resulted in a static market. Current buyers’ estimates of tradeable prices were reported at €650-700 per tonne exw.
Published by: India-Inés Levy