In the week ending June 27, domestic prices for hot-rolled coil imported in the UK saw some downward pressure as market sources continue to note that prices are close to the bottom.
The market is facing a combination of lackluster demand and significant stock availability, with prices expected to see a rebound only in the fourth quarter, market sources said.
“A lot of traders have been very nervous,” one trader said. “Prices must be getting close to the bottom.”
“A lot of stock being held by traders and service centers,” one distributor said. “There is no rush really for people to buy anything.”
Market sources also noted that imports were mostly of Turkish origin, with participants favoring their shorter lead times, compared to much later lead times for imports from countries like Vietnam, with deliveries reported for around November.
Much like their relevant European counterparties across the channel, UK market sources have also strongly commented on the impact that will be felt following the UK government’s extension of steel safeguard measures for another two years.
UK Secretary of State for Business and Trade, Kemi Badenoch, extended the steel safeguard measure on all 15 product categories for two years to June 30, 2026, the Department for Business and Trade said June 26.
The UK’s Trade Remedies Authority started an extension review of the steel safeguard measure in September 2023, which looked at whether serious injury would recur to UK steel producers if the measure was removed.
UK-based sources were angry that quotas had not been announced yet, leaving ample room for uncertainty and confusion, particularly at a time where the public is preparing to go to the polls next week for a general election.
“We need to see [the government] announce what the quotas are like,” one distributor said. “With a potential change of government, there will be new people on the job, making it hard to tell when the quotas are coming out.”
Platts assessed UK HRC down GPB5/mt on the week at GBP595/mt basis DDP West Midlands.
