Domestic prices for European hot-rolled coil continued to be largely stable June 12 as demand and market activity remained limited.
“Market activity is very low,” a service center source said. “Demand is very low for all products. We’re receiving low [inquiries] from customers.”
Sources also agreed that the proposed changes to existing safeguard measures in Europe are unhelpful for the market.
“New safeguards are not good for us,” the same service center source said. “It creates a lot of problems.”
On May 30, the European Commission said it was considering a 15% cap for a single country over the Tariff Rate Quota volume for HRC initially available in each quarter. European authorities are scheduled to announce definitive measures by June 30.
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.
Some mills have used these changes to push higher offers. Sources said that, although buyers are avoiding booking at higher prices, they will eventually have to accept them since inventory levels in the market are low.
“Stock level is low, so at some point people will have to order from the European mills,” another service center source said. “Mills are trying to cut production, so it is possible to see [an] increase in prices.”
Platts assessed domestic prices for HRC in Northwest Europe at Eur625/mt ex-works Ruhr, down Eur5 on the day.
Deals were reported at Eur620-630/mt EXW Ruhr. Offers were reported at Eur620-630/mt EXW Ruhr. Tradable values were heard at Eur620-640/mt EXW Northwest Europe.
Platts assessed domestic prices for HRC in South Europe at Eur625/mt EXW Italy June 12, down Eur10 on the day.
Offers were reported at Eur640-650/mt EXW Italy. Tradable values were heard at Eur600-620/mt EXW Italy.
