EUROPE HRC: Mills hold back on good order books; low demand from automotive adds pressure

Both steelmakers and buyers in the European hot-rolled coil market have been holding back from trading on Monday September 13, making deals only for small lots of coil, sources told Fastmarkets.

Producers have an opportunity to take a pause due to good order books. In addition, they prefer to keep spot prices stable at higher prices until negotiations with long-term buyers are finished.
But the automotive sector in Europe is unlikely to consume as many coil products as expected. Automotive manufacturers are reportedly working at reduced rates because of the global shortage of semiconductor chips for onboard electronics.

As a result, over the past week, few spot deals have been reported at lower prices. Producers had originally planned to ship volumes to the automotive sector, but lower demand...

Published

Maria Tanatar

September 13, 2021

15:43 GMT

London