Transactions activities have remained weak in the European HRC market in the past week mainly amid the holiday season in the region coupled with very high stocks of HRC. The general range of prices in the EU market has settled at €780-800/mt ex-works, compared to €780-900/mt ex-works. Notably, prices have remained unchanged in the Italian market, at €780-800/mt ex-works, though domestic HRC prices have indicated a sharp drop in northern Europe.
More specifically, HRC transaction prices have decreased in northern Europe in the past week, from €850-860/mt ex-works to €750-780/mt ex-works. Not unexpectedly, mills’ offers were higher, with some German mills for instance offering their material at around €800/mt ex-works, down by €100/mt over the past week. At the same time, despite such a significant drop, market insiders have reported low traded volumes, both because buyers have sufficient stocks for the moment and as market players are waiting for the situation to become clearer in September.
As reported previously, there is a lack of clarity regarding the consumption revival and price trend in September. “We do not expect trading activity to increase significantly like normally happens in September as overstocking and weak end-user demand will remain an issue. As for the price trend, it is unlikely that in September there will be a continuous downtrend, considering the anticipated energy crisis due to growing pressure from Russia. Lack of gas means lack of production,” a market insider told SteelOrbis.
