UK HRC remains stable as prices reach bottom

Domestic prices for hot-rolled coil in the UK remained stable in the week ended June 13 as market sources largely agreed that prices have reached the bottom.

“Demand is still average and there has been no movement in prices,” a service center source said. ”The market is very testing, and prices are close to bottom.”

Some sources also said that European mills were looking for orders because there has not been a lot of market activity recently. Production capacities are still available for July and August, and mills are looking for orders to fill their production lines.

“Mills are fairly desperate for orders,” the source said. “European mills are looking for orders because capacities are available for July-August.”

Sources also said some ex-stock material was being traded around due to Atlantic Steel going into administration. Atlantic Steel Processing, a flat steel service center and stockholder, went into administration on May 14, according to official government data.

“There’s quite a bit of ex-stock going around in the UK,” a trader source said, “because of the fallout of Atlantic Steel.”

For new EU-origin material, offers and tradable values were reported at GBP600-610/mt DDP West Midlands.

For ex-stock material, offers and tradable values were reported at GBP570-580/mt DDP West Midlands.

Platts assessed UK HRC stable on the week at GBP600/mt basis DDP West Midlands June 13.

For the “other countries” UK HRC category, mainly including material from Asia, the total quota — which is 22,589 mt — has been exhausted, according to official UK government data.

Devbrat Saha