Prices for hot-rolled coils in the European domestic market moved in different directions at the beginning of the week: in Northern Europe, quotations declined amid lingering buyer caution, while in Italy the market strengthened slightly after confirmed transactions.
In Northern Europe, trading activity remained subdued on Monday. Market participants talked about weak demand in the secondary market and did not expect a rapid improvement in the situation.
"We have no demand at all, and I think nothing will change until the end of the year," said one of the buyers. — "Inflation is very high, and consumer activity is extremely low."
Sellers agreed that interest from buyers has not yet recovered, despite some positive economic signals from Germany.
According to one of the buyers, the acceptable price level in Northern Europe was 730-740 euros per ton on terms of shipment from the factory. The second buyer informed Fastmarkets that he was ready to consider prices of 740-750 euros per ton from the factory. At the same time, the same source spoke about manufacturers' offers at the level of 770-780 euros per ton from the plant, but they were excluded from the index calculation due to lack of interest from buyers.
The third buyer named the supply level of 760 euros per ton from the plant. These quotes were also not taken into account because there was no demand for them.
At the same time, one of the sellers estimated market prices in the range of 730-740 euros per ton from the factory. According to him, a major European manufacturer offered the material at 750-760 euros per ton from the factory, but this offer was also not included in the estimate due to the lack of buyers.
Fastmarkets' daily price index for hot-rolled coils for domestic consumption and export in Northern Europe on Monday, September 14, amounted to 737.50 euros per ton. This is 7.50 euros lower than on September 11, when the indicator was at 745 euros per ton.
During the week, the index decreased by 5 euros per ton, but during the month it increased by 18.75 euros per ton.
In Italy, there were signs of a revival in trading at the beginning of the week, as buyers returned from the summer holidays. One of them reported that the confirmed transactions were in the range of 735-740 euros per ton from the plant.
Local producers have begun to raise their offers and target prices amid reduced availability of the material in the domestic market and ongoing uncertainty around supplies to the Taranto plant. A market participant reported that the plants offered a roll of 750 euros per ton from the plant, but buyers showed no interest.
The improvement in sentiment in Italy followed a decision by the Milan Court of Appeal, which last week upheld an order to close the hot production site at the former Ilva plant in Taranto until October 28. At the same time
