EU HRC buyers doubt possibility of further price recovery despite factors supporting rise

The upward trend apparent in the European hot-rolled coil market since the start of 2020 has come to a halt, with buyers now uncertain that the recovery in prices is sustainable.

Buyers and sellers have different outlooks on the direction of prices in Europe from February 11 onward, with a number of factors supporting domestic prices and continuing to suggest that the positive trend might soon return.
Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Northern Europe, was €473.57 ($517.91) per tonne on Tuesday February 11.
Buyers estimated “workable” prices for material to be €465-470 per tonne depending on tonnage. At the same time, steelmakers said that deals would not be made at any price lower than €480 per tonne ex-works.
Official offers have been heard at €490-500 per tonne ex-works.
The daily index had been rising from the start of the year until the beginning of February, supported by a slight recovery in seasonal demand and a lack of competitive import offers.

The index increased by €40.55 per tonne in the period to February 4, with a significant...


Maria Tanatar

February 11, 2020

15:45 GMT