EUROPE HRC WRAP: Mills, buyers hold back from trading to assess market direction

Domestic prices for hot-rolled coil in Northern Europe and Italy were broadly flat during the week ended Friday September 3 amid subdued trading activity, with buyers holding back from making deals and mills refusing to accept lower prices, Fastmarkets has learnt.

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €1,138.38 ($1,352.19) per tonne on Friday, up by €10.21 per tonne from €1,128.17 per tonne on Thursday.

The index was up by €0.05 per tonne week on week but down by €7.25 per tonne month on month.

Friday’s index was based on official mill offers reported at €1,150-1,190 per tonne ex-works, and workable prices indicated by buyers at €1,110-1,140 per tonne ex-works.

Fastmarkets calculated its corresponding daily steel hot-rolled coil index, domestic, exw Italy, at €1,016.00 per tonne on Friday, down by €0.38 per tonne day on day from €1,016.38 per tonne.

The index was down by €1.50 per tonne week on week and by €31.50 per tonne month on month.

The index was based on offers heard at €1,010-1,030 per tonne ex-works and achievable prices indicated at €1,000-1,020 per tonne ex-works.

Trading activity in the European hot-rolled coil market remained rather limited during the week, with both producers and buyer preferring to stay away from the market, assessing its likely direction in the post-holiday period.

Buyers were expecting HRC prices to drop in September, considering the fall in demand from the key consumer, the automotive industry.

A persistent shortage of semiconductors has been limiting manufacturing rates among carmakers and has had a corresponding negative effect on steel demand, sources said.

The availability of cheap import offers and decreased raw materials costs was adding further pressure to the picture, souring the mood among buyers.

The producers, in their turn, showed no intention of cutting their HRC price, citing good order books, with some even claiming to be sold out through the first quarter of 2022.

In any case, producers were putting their hopes on a positive resolution of the US-EU steel tariff dispute before November 1. The removal of the US’ Section 232 tariffs for EU-origin materials would pave the way for European mills to export HRC to the US, aggravating the acute shortage in the EU domestic market and supporting prices.

eu-hrc-wrap-2021-09-06.jpg

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed