Domestic UK hot-rolled coil prices were stable in the week to Aug. 22, amid weak demand and excessive supply.
“It is the worst time since 2018,” a trader source said. “Other buyers expect prices to decrease.”
Trade sources said the price gap between Asian imports and European imports is widening, making Asian material appealing for customers, despite the longer lead times and freight involved.
“The gap between EU material and Asian material is opening up.” trader source said. “We can still buy from the far East.”
However, low end-user demand and limited restocking in the domestic market is forcing market participants to buy closer.
“If I were a service center, I would buy more locally,” a trader source said.
Trade sources expect current market dynamics to continue until the first quarter of 2025, with buyers restocking as per requirements and avoiding the buildup of inventory. With demand stagnating at low levels, prices could see further downward movement, trade sources said.
“We are still seeing some spot inquiries,” a trader source said. “I still think there is a period of activity there.”
Platts assessed UK HRC at GBP570/mt basis DDP West Midlands, stable on the week.
Devbrat Saha
