In the face of a bearish market sentiment, European hot-rolled coil (HRC) prices have shown remarkable stability. On June 26, Fastmarkets reported that despite the ongoing pressure from weak demand and an oversupplied market, HRC prices in Europe have not undergone significant changes.

The market's stability is attributed to the anticipation of the new EU import safeguard measures for steel, which are expected to influence the market dynamics in the third quarter. Fastmarkets' daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €629.38 per tonne, reflecting a minor decrease from the previous day's €630.00 per tonne.

Northern European mills have been offering HRC at €640-650 per tonne ex-works, but the actual transaction prices are likely to hover around €630 per tonne ex-works. Tradeable prices are estimated to be in the range of €620-630 per tonne ex-works, as confirmed by market participants.

The market is currently in a quiet phase, with producers eager for orders while negotiations for long-term contracts with the automotive industry are underway. Distributors are also adopting a wait-and-see approach, further contributing to the market's calm. The import market is similarly unattractive, with Asian HRC prices comparable to domestic prices and uncertainties surrounding the safeguard measures limiting the appeal of imports.

Some industry insiders suggest that production cuts may be necessary to rebalance the market, as steel service centers grapple with high stock levels. Import offers for Asian HRC to Northern Europe were heard at €600 per tonne CFR, indicating a potential need for market adjustment.

This period of stability in the European HRC market is a prelude to expected changes in the coming quarter, as the industry braces for the impact of new regulations and continues to navigate through a landscape of cautious optimism and strategic planning.