In the face of persistently low demand, the European hot-rolled coil (HRC) market experienced a slight uptick in prices on July 8, 2024. This development comes despite buyers’ reluctance to accept higher price points, with the tradable level estimated to be closer to €620-630 per tonne ex-works.
The modest price rise is attributed to the new EU safeguard measures that came into effect on July 1, which have significantly reduced the influx of cheap imports. Consequently, European mills have been compelled to propose higher prices for September-delivery material.
In Northern Europe, HRC offers were predominantly within the range of €640-650 per tonne ex-works. However, the calculated daily steel hot-rolled coil index for Northern Europe stood at €633.75 per tonne, reflecting a marginal increase from the previous week.
Southern Europe mirrored this trend, with Italy’s domestic HRC price index reaching €626.25 per tonne, marking a slight increase from the preceding week. Offers in Italy were reported at €640-650 per tonne delivered, which translates to €630-640 per tonne ex-works.
The market dynamics reveal a cautious approach from buyers, with many Asian suppliers having already exceeded their EU import quotas for the third quarter early in July. This has led to a scarcity of offers from Asia and a potential bottleneck in the supply chain.
Despite the price adjustments, the European HRC market continues to grapple with subdued demand, casting uncertainty over the sustainability of the current price levels.
