Weak import demand supports EU HRC price stability

Domestic European hot-rolled coil prices remained largely stable Oct. 22, as ongoing safeguard investigations contributed to weak import demand and full quotas translated into higher prices on the import market.

The spread between import and domestic prices continued to narrow, making imports increasingly unattractive.

Low real demand in the European flat steel spot market was an important factor in maintaining largely stable prices in the medium term, said an Italy-based trader source. The source added that due to safeguard investigations and quotas on custom-cleared material, many market participants bought material before the first October deadline. As such, market participant restocking requirements have been low.

Platts assessed Northwest European HRC at Eur555/mt ex-works Ruhr Oct. 22, stable on the day.

Offers were reported at Eur560-580/mt ex-works Ruhr.

Platts assessed domestic HRC in Southern Europe at Eur540/mt EXW Italy, down Eur5 on the day.

Tradable values were reported Oct. 22 at Eur540/mt, delivered Italy.

A Germany-based mill source said the import market was “a bit of a question mark.” Antidumping investigations and quotas have made the import market seem a riskier option for buyers compared with the domestic European market.

Platts assessed imported HRC in Northwest Europe at Eur520/mt CIF Antwerp, stable on the day.

Platts assessed imported HRC in Southern Europe at Eur535/mt CIF Italy, stable on the day.

Platts is part of S&P Global Commodity Insights.

Anais Dolan | Devbrat Saha