European mills producing hot-rolled coil are expected to cut their output as a lack of real end-user demand has forced domestic prices into a downward trend.
“Mills must correct the market announcing real cut in production and firm prices,” a trader source said. Market sources said production cuts are needed to prevent further price drops in the European hot-rolled coil market as demand remained subdued March 18. Market participants are unwilling to buy domestic HRC at current levels and expect prices to bottom out further.
“Mills have to reduce capacities heavily to stop further drop of the prices,” a distributor source said. “There is no bottom price at all now.”
Tradable values domestic HRC in Northwest Europe were reported at Eur680-690/mt ex-works Ruhr, with the majority of data heard at Eur680/mt ex-works Ruhr.
Platts assessed the price of domestic HRC in Northwest Europe down Eur5/mt on the day at Eur680/mt ex-works Ruhr March 18.
In Southern Europe, tradable values for domestic HRC were reported at Eur650-670/mt ex-works Italy. Platts assessed the domestic price of HRC in South Europe down Eur5/mt on the day at Eur660/mt ex-works Italy March 18.
Market participants were awaiting clarity on safeguard quotas for imported HRC, and as a result, import activity remained low. In Southern Europe, offers for Vietnam and India-origin imported HRC were heard at Eur600/mt CIF Italy for May shipment and June delivery.
Author Devbrat Saha
