Trading in hot-rolled coils in Europe remained sluggish on August 4: seasonal vacations distracted many market participants from work and limited spot purchases. Plants in Northern Europe were targeting a price of 715-750 euros per ton from the plant, depending on the specification, but buyers are not showing interest yet, sources said, describing demand as weak amid an almost complete lack of activity. ,
,"At the moment, the market is exceptionally quiet. Most market participants are on vacation, and despite the fact that the factories expect to receive about 730 euros per ton of finished products, customers are in no hurry to place orders. I don't remember such a slow summer period," said one customer from Germany. The second source is from among the buyers
He said that there were practically no purchases or sales, demand remains low, and most market participants are focused on clearing existing imported goods and issues related to the EU Border Carbon Control Mechanism (CBAM) and requirements under protective measures, rather than purchasing new shipments.
"The market, in fact, is waiting for September," added a second source from among the buyers. Market participants
The companies that are still present on the market reported that the offer prices are around 710-740 euros per ton from the factory, depending on the specification, with most offers in the range of 710-720 euros per ton from the factory. The price of hot-rolled coils for the domestic market in Northern Europe, exw, was calculated on August 4 at 716.25 euros (825.14 US dollars) per ton, which is 1.25 euros lower than 717.50 euros per ton on August 3.
In Italy, meanwhile, the latest HRC offers were priced at 710-715 euros per ton ex-works, and the estimate was 700-710 euros per ton from the manufacturer. The daily price index for hot-rolled coils in the Italian domestic market, exw, remained unchanged on August 4 and amounted to 710.63 euros per ton.
Current activity was low, although the mood for September was becoming more positive, the sources said.
"Stocks in European ports have decreased; it is important to note that the tightening of protective quotas and reduced import availability are expected to support the market," said a local buyer.
Author: Vlada Novokreschenova.
fastmarkets.com