The UK hot rolled coil market remains lacklustre, with little change to sentiment or prices despite US steel tariffs coming into effect, Kallanish learns from sources.
Participants note that market conditions have remained largely unchanged throughout March so far, with stability in HRC prices reflecting that.
Kallanish assessed UK S275 grade HRC at £525-570/tonne ($679-737/t) ddp Midlands on 13 March, unchanged week-on-week.
Recent quotes for material imported from Asia are towards the lower end of the range, while HRC from Europe has been towards the top end.
Demand continues to be limp on the UK market, with a lack of supportive factors to create any substantial upward momentum.
“There are lots of enquiries and no one booking anything,” one market participant tells Kallanish, noting that some European mills had filled order books until late May, and were no longer issuing fresh quotes. “They are sitting and having a think and revision of their next offer.”
This echo’s a similar trend on the EU market, where many mills held quotes whilst they were awaiting the outcome of the safeguarding review. In recent days, the EU has notified the WTO of adjustments to its safeguard measures on certain steel imports.
The participant adds that lower-priced imports from Asia were not particularly attractive to some, given the material available closer to home.
Meanwhile, the greatest source of demand continued to be for HRC which needed further processing, including colour coating and galvanizing. One source notes enquiries seeking large volumes of galvanized material, whilst stocks of these grades were minimal.
“There’s not a lot changed at all. Pretty steady, almost stagnant,” says another participant. “We are struggling to get hold of galvanized material; it’s a concern, and very slow coming through. There are things on the horizon where availability might start pushing price up, but it’s too early to see.”
They note that while Donald Trump’s tariffs could push prices up, the only real driver was demand, adding that many buyers were reluctant to purchase “anything”.
Participants previously told Kallanish when the US tariffs were first announced that there was little support for prices, and tariffs were of minimal concern, because volumes from the UK to the US only accounted for 7% of exports.
The tariffs went into effect on 12 March, with the UK not granted an exemption.
However, the main consequence of the tariffs remains the potential flood of diverted material into the market. Some participants and industry associations are urging the UK government to respond faster with safeguarding measures or retaliation like that of neighbouring Europe.
Carrie Bone UK
