Domestic European hot-rolled coil prices remained largely stable on Oct. 15, as the import market weakened due to the spread between domestic Europe mill prices and import prices narrowing.
As a result, “the import market is dead,” a Germany-based mill source said.
Demand in the European market remained low potentially prompting “suppliers to cut production in the next few weeks”, according to the Germany-based mill source. In order to maintain current domestic European offer levels, “demand must increase, or production must fall.”
The situation in the market remained the same despite European mills raising prices in response to the Chinese stimulus package, according to a Germany-based service center source. “Reductions in European mill inventories and production capacities have not been sufficient to compensate for the reduction in the demand for European flat steel products.” The European market is in a situation where “consumption has reduced more than production capacities,” resulting in oversupply putting pressure on price stability.
Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr on Oct. 15, up Eur5 on the day.
Offers were reported at Eur590-600/mt EXW Ruhr. Tradable values were reported at Eur550-570/mt EXW Ruhr.
Platts assessed domestic HRC in Southern Europe at Eur545/mt EXW Italy, stable on the day. No offers, bids, deals or tradable values were reported.
Meanwhile, import market activity remained low. The gap between import prices and domestic European mill offer levels has decreased, reducing demand for imports.
Platts assessed imported HRC in Northwest Europe at Eur530/mt CIF Antwerp, stable on the day.
Platts assessed imported HRC in Southern Europe at Eur535/mt CIF Italy, stable on the day.
