Weak demand, oversupply, and strong competition from imports continue to weigh on European prices for hot-rolled coil (HRC). Buyers are refraining from trading due to expectations that HRC prices will continue to decrease.
Fastmarkets reported that the daily steel hot-rolled coil index for Northern Europe was €580.00 per tonne on September 9, down from €580.75 per tonne on September 6. Mills in Northern Europe are offering October-delivery coil at €580-600 per tonne ex-works, but buyers estimate workable prices to be lower, around €560-580 per tonne ex-works.
The market sentiment remains largely negative, with final consumers not restocking and waiting to see how the market develops. Some buyers expect prices to fall below €500 per tonne ex-works by the end of the year.
The combination of low demand, decreasing raw material prices, and strong competition from imports, particularly from China and Vietnam, is expected to continue exerting downward pressure on prices.
