European prices for hot-rolled steel were virtually unchanged on May 13, as market participants reported calmer conditions caused by weak demand uncertainty and downward price expectations.
"Factories want more money, but they can't get it, and even if our customers' inventories are low, they can still buy them quickly on the market," said a source at the German service center. The same source also said that due to the short-term nature of customer purchases in the current market, contracts for the second half of the year remain unclear, and July is still too far away for discussion.
Carbon-based steel is being discussed, the same source said: "No one is willing to pay for it, but it is difficult to demand additional costs of 200 euros per ton[for a certificate]when we are already negotiating a base steel price of 5 euros per ton. There is too much competition between factories and service centers."
One of the distributors referred to quieter conditions on the ground, noting that "the offers have disappeared and the buyers have retreated. Our sales are 20% of last year's sales. There are no negotiations on prices, only on quantity."
The same source pointed to rumors of a reduction in supply at both domestic and Turkish factories, which will further reduce pressure on the market, and neither prices nor the new German government will be felt for several weeks on possible support from large companies.
However, despite the talk of lower prices in the market, one of the sources at the plant still insists that prices and consumption are not declining at a rapid pace, although he admits that they have slightly lowered prices.
"There is no panic, and our volumes are still maintained, but we hope for an increase in demand in the market Smaller batches are being squeezed out," the source said
Similarly, a trader from Southern Europe expressed negative expectations regarding prices, citing supply-side pressure as support for domestic prices.
"We don't quite understand why people expect lower prices; service centers don't buy imported goods, the exchange rate is declining, and the main blast furnaces are not working. We don't see any changes in prices," the trader said.
Platts estimated HRC ex-works in Italy at 620 euros per tonne, stable day by day, and HRC CIF in Southern Europe at 525 euros per tonne, which is 5 euros lower than the previous day.
The Platts agency estimated oil prices in Northwestern Europe at 640 euros per ton (EXW, Ruhr) and 540 euros per ton (CIF, Antwerp), which are stable from day to day.
Charles Thompson
