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Market participants confirmed trading at lower prices in the North European hot-rolled coil market on August 9 amid growing uncertainty over September consumption.

Northwest European HRC was down at 796 euros/mt, down 1.30 percent from 806.50 euros/mt the previous day.

Uncertainty was prevalent in the market after a period of relative stability due to concerns about September price levels and market activity in general.

Producers and buyers were waiting for clarity on September consumption before moving into the market. Buyers were ready to restock some products and even willing to accept a price increase if there was certainty that the purchased material would not be devalued like the coil purchased following Russia’s invasion of Ukraine.

Buyers do not have a clear view of the market for September, which does not help sales. Manufacturers chasing volumes and cutting prices also contribute to this scenario.

HRC prices have plummeted from their peak of 1460 euros/mt on March 21. This, combined with low demand from end users in recent months, has led to a sharp devaluation of inventories bought in panic after Russia’s invasion of Ukraine in February.

Meanwhile, steel mills have waited until September before setting new bids, and sources have considered introducing pricing mechanisms, such as surcharges, to deal with rising transportation and production costs.

Energy issues remain paramount, although dependence on water levels in the Rhine River has been a cost factor, with transportation able to accommodate only 30 percent of usual volumes. A service center source earlier cited shipping costs of 100 euros/mt, up from the usual level of 20 euros/mt.

The direction of prices in the northern market is linked to actual consumption levels and the resulting need for traditional replenishment efforts. If consumption improves, prices could move in tandem, but if they remain poor we could see further declines through September-October.