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Hot-rolled coil prices in Northwest Europe stood at 825 euro/ton on 13 July, up slightly (+0.24%) from the previous day’s reading (823 euro/ton), as market activity remained low and stocks are expected to be replenished by the end of July.
The expected replenishment of stocks, coupled with production cuts by EU steel producers and some recovery in steel consumption by carmakers, is likely to support prices. Some market sources, however, questioned the extent of the recovery in demand.
Demand has improved, but is recovering from such a low point that it is unlikely to reach normal rates this year. Market activity remains weak at the moment, any improvement is slow, and expected inventories have not yet started.
Some sources, however, believe that taking into account the reduction in steel production, the prolonged summer maintenance of steel mills and the shutdown of equipment, buyers will have to restock for September no later than the end of July, supporting the recovery of domestic prices.
In addition, interest in imported HRC was limited due to long lead times. Negotiations for HRC from Asia were priced at 770-780 euro/ton CFR Antwerp.
Italian mills offered HRC at €800/mt ex-works, while buyers estimated attainable prices at 770-790 euro/ton ex-works.
