UK HRC market remains unchanged amid low demand, excess supply

Domestic prices for hot-rolled coil in the UK were stable in the week ending July 11, following a prolonged period of low demand and excess supply.

“The market is in a standoff mode basically,” a UK-based trader source said. “Mills don’t want to go lower on prices, and customers don’t want to pay any higher.”

Market sources said that most imports have become unattractive due to the quotas, and some mills, especially in Europe, are using this opportunity to go aggressive.

“Imports from India fall under quotas. Lead times for imports from Vietnam are unattractive,” the source said. “Mills are using this to go aggressive on prices because they’re not making any money at the current levels.”

Lead times on some imports from countries like Vietnam remain particularly long, proving a costly choice for consumers despite the initial discount they may offer. Imports from Turkey remain the only suitable alternative for market participants, sources said.

Platts assessed UK HRC flat on the week at GBP595/mt basis DDP West Midlands.

Devbrat Saha


spglobal.com