Domestic European hot-rolled coil (HRC) prices remained largely unchanged on August 1, reflecting weak market fundamentals. Market sources expressed uncertainty about the future price outlook, noting that prices cannot decrease further as mills are operating at break-even or tight margins.
The strain in the HRC sector is attributed to sluggish demand in the European automotive industry and competitive Chinese automotive exports. Some stability is expected in specialized coils, such as hot-dipped galvanized, where product quality remains higher than alternatives available in Asia.
The future of the automotive industry may depend on support and legislation from the European Commission, potentially in the form of tax cuts or subsidies. Northwest European HRC was assessed at €620/mt ex-works Ruhr on August 1, stable with July 31, while domestic HRC prices in Southern Europe were also stable at €620/mt ex-works Italy.
