Hot rolled coil (HRC) prices across Europe have come under renewed pressure due to sluggish demand and ongoing competition from lower-priced imports. Meanwhile, buyers, wary of further price declines, have been reluctant to commit to new bookings, contributing to a quieter market. In the import segment, the recent reduction in volumes, partly due to protective trade measures, has helped support domestic prices somewhat, even if it has not reversed the overall trend. However, in recent weeks, more competitive import offers - especially from Turkey - have entered the market with significant discounts, putting additional pressure on local prices.
Specifically, most local HRC prices from mills in northern Europe, mainly for July deliveries, have moved to €635-645/mt ex-works, from €660-680/mt ex-works last week. Besides, according to sources, at least one leading steelmaker was reported to be actively seeking additional orders to fill short-term production schedules, suggesting underutilized capacity. In the meantime, offers from an Italian mill have been reported in Germany at around €650/mt delivered, though, according to most market insiders, tradable prices in northern Europe have been estimated at €620-640/mt ex-works, down by €10/mt week on week.
“Market sentiment in the near term remains largely bearish, with expectations of a continued softening in prices. Still, some believe that cost pressures - particularly from raw materials and energy - could set a practical floor, limiting how far prices might fall. Most agreed that €600/mt ex-works is emerging as a psychological and cost-based threshold for suppliers,” a market insider told SteelOrbis.
Meanwhile, in Italy, most offers from mills have been estimated at €620/mt ex-works, mainly the same as last week, while offers from other European mills in the country have been reported at around €640/mt delivered. However, workable prices have dropped to €600-605/mt ex-works, down by €15/mt on the higher end of the range week on week, with several sources already reporting €590/mt ex-works as a new price which could be achievable in the short run.
Meanwhile, import HRC offers have been estimated at €520-580/mt CFR, depending on the supplier, mainly the same as last week. According to sources, several deals for around 20,000-25,000 mt of ex-Turkey HRC have been signed at €540-550/mt CFR Italy, duty paid, while by the end of the week, according to sources, workable prices have been estimated at an even lower level - €530/mt CFR, duty paid. Besides, offers in Spain for ex-Turkey HRC have been voiced at €540-560/mt CFR, duty paid, sources said.
In the meantime, another deal for around 20,000 mt of ex-Indonesia HRC is reported to have been done through traders at €580/mt CFR Spain. “This price looks very high, but, while another Indonesian producer offers its coils at a much lower level, around €520/mt CFR, many do not trust the quality and refrain from cheaper bookings, ” a Spain-based trader said.
Furthermore, offers for ex-India HRC have declined to €555-565/mt CFR southern Europe, from €570-575/mt CFR last week, though no new deals have been reported so far.
“With the current fundamentals showing little sign of immediate improvement, participants expect a challenging few weeks ahead, with limited activity and ongoing price negotiations shaped by cautious end-users and cost-conscious mills,” a market insider told SteelOrbis.