Domestic prices for hot-rolled coil (HRC) in Europe have been stable on April 25, but steelmakers are expected to push offers up soon.
The stability in domestic prices has been supported by a combination of factors, including restocking by distributors and a lack of competitive import offers after the change in the Euro to US dollar exchange rate. Additionally, long lead times and expected changes in safeguard measures have also discouraged buyers from making overseas coil purchases.
These factors have put an end to the downtrend that had been observed in the European HRC market since the end of January.
Despite limited real demand, sources indicate that the mills are expected to increase their offers in the near future. As a German service-center source explained, "The mills plan to hold prices at current rates and maybe push for the increase as there is no competition with imports. But end-user demand remains low.
"A trader also commented, "I wouldn't be surprised if mills try to lift offers if they have managed to make some sales at these lower levels. However, we'll have to see if the market can absorb a price increase.
"Platts assessed domestic prices for hot-rolled coil in Northwest Europe as stable at €625/mt ex-works Ruhr on April 25. Deals and tradable values were reported in the range of €620-630/mt ex-works Ruhr, while offers have been heard at €620-630/mt ex-works Ruhr and €610-615/mt ex-works Ruhr for large lots.
For imported HRC in Northwest Europe, Platts assessed prices at €610/mt CIF Antwerp on April 25, also stable on the day. Offers of the material from Asia have been heard in the range of €600-630/mt CIF Antwerp.
