Market activity in the European hot rolled coil (HRC) sector has remained subdued, as weak demand, ongoing uncertainty, and broadly bearish price expectations continue to dampen sentiment. At the same time, perceptions of the overall trend vary within the market. Sellers generally maintain a more positive stance, while buyers remain wary.
Spot market conditions have been notably quiet, with offers becoming scarce and buyers stepping back from active purchasing. At the same time, according to sources, sales volumes have dropped sharply compared to the same period last year, and discussions have shifted away from pricing to a focus on quantities alone. Specifcially, most local HRC prices from mills in northern Europe, mainly for July deliveries, have moved to €660-680/mt ex-works, from €670-700/mt ex-works last week. In Italy, most offers from mills have been estimated at €620/mt ex-works, down by €10-20/mt week on week.
“Despite the prevailing downbeat mood, not all producers share the same level of pessimism. While some mills have made minor price adjustments, they argue that neither demand nor prices are collapsing as quickly as market talk might suggest,” a representative of an Italian mill told SteelOrbis.
Meanwhile, the tradable price levels both in northern Europe and Italy have been showing a slight downward bias, staying at €640-650/mt ex-works in the north, down by €5/mt on the higher end of the range week on week, while workable prices in Italy have been estimated at €600-620/mt ex-works, compared to €610-630/mt ex-works last week.
“Procurement remains focused on short-term needs, leaving longer-term contracting for the second half of the year in limbo. July is still considered too distant for serious negotiations, reflecting the current caution among buyers,” a market insider told SteelOrbis.
Meanwhile, import HRC offers have been estimated at €520-570/mt CFR, depending on the supplier, compared to €500-585/mt CFR last week. Offers for ex-Indonesia HRC have been voiced at €520/mt CFR, compared to €500/mt CFR reported at the end of last week, though, according to sources, lower prices are still possible to achieve with firm bids. Offers from Vietnam have been reported at €540/mt CFR, up by €10/mt over the past two weeks, while indicative offers for ex-India HRC have been estimated at €570-575/mt CFR, mainly the same as last week. Besides, according to sources, offers from Chinese suppliers, which are rare in the European market, have been reported at around €555/mt CFR, duty paid.
Furthermore, ex-Turkey HRC offers have been voiced at €545-570/mt CFR, including duty, compared to €540-585/mt CFR last week.