The Spanish hot rolled coil market continues to experience persistent weakness, driven by lower demand and a stagnant industrial environment as it moves into the third week of November. Most market participants anticipate challenging conditions for the rest of the year, Kallanish understands from local service centre sources.
“Demand from major consuming sectors has consistently fallen short of expectations throughout the year,” one supplier notes. “Activity remains far below the usual ‘normal’ level, and the industry has been in a complicated situation since the summer. The outlook for the rest of the year is not optimistic.”
A key factor contributing to the slump is reduced consumption in the automotive sector, which is weighing on the HRC market. The solar energy sector, meanwhile, is also experiencing uncertainty, with many primarily private projects remaining on hold.
“HRC sales in Spain remain weak. Major service centres are resisting offers below €590-600/tonne, but with pressure from international markets, they are likely to adjust their prices in the coming weeks,” another market source comments.
Spanish mills are currently quoting S235JR grade HRC at around €570-580/t ($602-612) ex-works, with some producers already preparing to reduce offers by €10/t. Meanwhile, HRC import prices have remained stable for nearly a month at €580-590/t cfr, which has limited their appeal to Spanish buyers.
Todor Kirkov Bulgaria
