The mood in the European HRC market was strongly negative last week due to limited demand and a seasonal activity slowdown.
Offers from integrated Northwest European mills have been limited as some have full order books until October. Scheduled maintenance during summer and healthy demand from the automotive industry supported those solid order books.
Other integrated mills, however, had August rolling coil to offer, indicating limited demand from distributors.
Spot demand has been low as European distributors have held back from bookings due to an uncertain outlook for the second half of 2023, sufficient stock volumes and weak demand from end-users, apart from the auto industry.
Market participants estimated HRC prices from Ruhr-area mills at EUR 660-680 (USD 741-764) per ton EXW Ruhr, and offers from Northwest European mills outside the Ruhr area have been heard at EUR 650-660 (USD 730-741) per ton EXW.
The strengthening of the Euro against the USD has resulted in a price decline for imported coil. Although European buyers have shown little interest in overseas coil due to long lead times, they have been trying to use cheaper imports as leverage in negotiations with the EU mills.
Offers of HRC from Vietnam have been heard at USD 640-650 per ton CIF Italy and from other Asian suppliers around USD 670 per ton CIF Italy.
