‘We are at the bottom of the market’: service center source
UK hot-rolled coil prices rose on Nov. 28, as market participants cited ongoing negativity impacting the sector and limited buying interest.
Although spot buying interest remained minimal on the week amid stable offers, sources referred to higher tradables and shared relatively bullish outlooks for 2025, with many of them hopeful for price increases.
“It’s not all negative, prices have come up from the EU and from imports, even if demand hasn’t increased,” one seller said. “A lot of service centers have held back booking material and, on their sales side, they aren’t putting pressure on customers, so they are barely covering costs before thinking of replacement costs.”
Market participants also referred to the ongoing negativity surrounding EU mills and the potential for further cutbacks in both capacity and workforce, following announcements from steel makers ArcelorMittal and Thyssenkrupp.
“Nobody is making a profit at any level of the market, there is something fundamentally wrong, but I think we are at the bottom and if we see cutbacks then there will be conditions for EU mills to raise the price,” a distributor source said.
A service center source also suggested HRC prices had reached the floor. “Traders are struggling to get shippable quantities into the UK, and EU mills aren’t making money, so we’re seeing closures and it’s inevitable we will get more closures and cuts quite soon,” he said.
“We are at the bottom of the market, so we need more cutbacks, and it could lead to price hikes; we are already hearing of higher rates into March from some EU mills, and if imports are out of the question for Q1, EU mills will dominate the market, which could be bullish but only if demand improves,” the same source said.
Platts assessed UK HRC at GBP530/mt basis DDP West Midlands, up GBP5 on the week.
