Domestic prices for UK hot-rolled coil fell slightly in the week ending July 18, with some producers being forced to sell at a loss in order to incentivize demand.
“The hot rolled market is completely shot,” a service center source said. “There is too much of it around. Demand is going to remain as it is now through to the end of summer.”
Market sources remain pessimistic for the rest of the year, expecting minor increases in price closer to September. They do not expect any significant increase in demand until next year.
Some sources said that gaps for price increases may be present, particularly as many believe that prices have reached bottom, but the time frame on this remains unclear.
“People have been very cautious buyers,” a trader source said. “At some stage, there will be gaps appearing, but the question is when.”
Platts assessed UK HRC at GBP580/mt basis DDP West Midlands, down GBP15 on the week.