European HRC prices remain stable as factories strive for higher levels
European hot-rolled coil prices remained stable on November 28 as buyers rejected more favorable offers from suppliers.
Market participants faced significant uncertainty related to CBAM and guarantees, which undermined customer confidence. In addition, buyers were reducing their positions ahead of the end of the year.
.During the day, offers for hot-rolled coils were reported at a price of $625-650 per ton from a factory in the Ruhr and $605-615 per ton from a factory in Italy.
Platts estimated domestic demand in Northern Europe at 605 euros per tonne at plants in the Ruhr and in Southern Europe at 595 euros per tonne at plants in Italy, which is stable from day to day.
"However, there is a chance for further growth. But people will most likely be waiting," the trader said. "As for stocks, people are well supplied now, so there will be some resistance before Christmas, and then demand for January and February production will increase at the factories."
"Prices should be supported by demand when it arises," the manufacturer said. "Stocks are oversupplied and there is uncertainty about CBAM, which is preventing a stronger price increase. But new trade measures will eventually support growth. Some of the imports will be replaced by supplies from the domestic market."
There were reported offers for cold-rolled coils at a price of 730-760 euros per ton from the Ruhr plant. However, CRC buyers were asking for 710 euros per ton for delivery to Europe, the manufacturer said, adding that this was too low a price to accept. He estimated the difference between buyers and sellers at 50 euros per ton.
.Platts estimated domestic oil prices in Northern Europe at 700 euros per tonne, excluding production in the Ruhr, stable from day to day.
Wojciech Laskowski