HRC prices in the EU are facing downward pressure as market sentiment remains cautious
Domestic hot-rolled coil prices in Europe remained mostly stable on May 8, with sources reporting a slight decrease of 10-20 euros in various regions.
"Overall, prices have been fairly stable, but we expect a slight decrease in the short term, with the HRC price in the Ruhr at 630-640 euros and in Italy at 620 euros," said a source at the plant. "We are not seeing any significant changes in the market right now, and the prospects remain rather weak."
Despite this, we are optimistic about the second half of the year and expect a potential improvement as the market stabilizes. However, concerns about the gap between domestic and import prices, combined with regulatory uncertainty, persist.
"Import activity is declining, and there is no clear information about where this will lead," the source added, noting that the lack of data on prices for imported goods could lead to lower prices for imported goods. The lack of clarity regarding the mechanism for regulating carbon dioxide emissions (CBAM) has compounded market indecision. "People are starting to understand what this really means, but the commission still has a lot of gaps to fill."
Platts estimated HRC ex-works in Italy at 620 euros per tonne, and HRC CIF in Southern Europe at 530 euros per tonne, and both indicators are stable from day to day. Platts estimated oil prices in Northwestern Europe at 640 euros per ton, excluding exports to the Ruhr, which is 5 euros lower than the previous day, and CIF oil prices in Antwerp at 540 euros per ton, stable every day.
Devbrat Sakha
spglobal.com