Persistent oversupply has continued to limit trading activity in the European hot-rolled coil market, sources told Fastmarkets on Monday November 14.Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe at €641.25 ($663.69) per tonne on Monday, down by €3.75 per tonne from €645 per tonne on Friday.
The latest calculation of the index was down by €9.17 per tonne week on week and down by €58.75 per tonne month on month.
Several distributors in the region reported tradeable values for HRC at €630-640 per tonne EXW, and even €620 per tonne EXW in some cases.
Local integrated mills reported higher price levels at €650 per tonne EXW.
Most producers in the region were still able to offer December rolling coil and were holding back from offering January production.
“It is not a question of price; it is a question of demand. Until demand recovers, it makes no sense to talk about price,” a mill source said. “We can keep lowering prices, but it won’t help to increase sales, because buyers don’t need [HRC],” he added.
Buyers, meanwhile, continued to hold back from trading, making only hand-to-mouth purchases to cover urgent needs.
Distributors and steel service centers were focused on reducing their inventories before the end of the year.
As a result, sources said they expect more price drops before the year ends.
Fastmarkets’ calculation of its daily steel HRC index, domestic, exw Italy was €620 per tonne on Monday, down by €5 per tonne from €625 per tonne on Friday.
The latest calculation of the Italian index was down by €46.25 per tonne week on week and down by €80 per tonne month on month.
HRC offers from local mills were reported at €630-640 per tonne delivered on Monday, which nets back to €610-620 per tonne EXW, sources said.
Italian mills adjusted offers downward late in the previous week in the face of low demand and import pressure, but it did not help to spur buying activity, sources said.
Italian mills were reportedly still able to offer HRC with December delivery to the market, which indicated they may be having difficulty filling their order books.
Import HRC offers from Southeast Asia were heard at €570-590 per tonne cfr, unchanged from Friday.
Published by: Julia Bolotova