In the European steel market, hot-rolled coil (HRC) producers are contemplating raising their prices, even as they face a persistent issue of slow demand. The market has seen prices remain largely stable, but there is an expectation that producers will seek higher offers following a review of safeguard measures. However, the weak demand from end-users, particularly noted in the automotive industry, continues to be a significant concern.
Despite the market's uncertainty, some producers in Northern Europe have made tentative steps towards increasing prices. For instance, a mill in the Benelux region has quoted July delivery HRC at €650 per tonne ex-works, a slight increase from the previous week's €640 per tonne ex-works. Similarly, in Germany, offers for July-delivery coil are ranging between €640-650 per tonne delivered, which equates to approximately €630-640 per tonne ex-works.
The market's response to these offers is yet to be determined, as buyers continue to adopt a cautious approach, preferring hand-to-mouth bookings while they assess the situation. The overall sentiment suggests that achieving higher prices based solely on the expected effects of safeguard measures may prove challenging due to the subdued demand from end-users.
