European HRC prices declined slightly amid bearish sentiment
European prices for hot-rolled products were mostly unchanged after the holiday holidays, and sentiment remains bearish amid insufficient demand, Fastmarkets sources said on Monday, June 2.
The Northern European hot-rolled steel market was quiet on Monday after public holidays in the region for a week until Friday, May 30.
Offers were received for the supply of HRC in July from an integrated plant in the region at a price of 640-650 euros (731-742 dollars) per ton from the factory or with delivery.
At the same time, it was reported on Monday that, according to buyers' estimates, the sale price from the plant will be 600-630 euros per ton.
Mill sources claimed that the lower end of the range was more "wishful thinking by customers" than the actual price level.
Due to the discrepancy between the offer and the bid and the pessimistic expectations of buyers, trading in the region was minimal.
"End consumers and stockbrokers do not exclude the possibility of further price reductions[HRC]and[many are trying]to liquidate their stocks before the start of the holiday period," said the German buyer.
And so far, no progress has been made in negotiations to conclude long-term contracts with end users for the second half of this year. 2025.
"EU plants have requested higher prices compared to contracts for the first half of 2025 - about 800 euros per ton. But spot prices[for HRC]started falling in May, so naturally, original equipment manufacturers (OEMs) do not agree to the proposed price[for long-term contracts]," said a source familiar with the situation.
As a result, according to Fastmarkets calculations, the daily price index for hot-rolled steel for domestic consumption in Northern Europe is Yulia Bolotova
fastmarkets.com