Trading in the European HRC market has been very limited in recent weeks, with most buyers postponing restocking until early October as they await more clarity on import volumes.
In Northern Europe, HRC clearing value estimates for HRC were reported at €630-650 ($676-698) per ex-works tonne on Wednesday.
Most producers in the region are still able to offer coils for October/November delivery, indicating weak order books.
Overall, offers for October/November coils were reported in the region in the range of €640-685 per tonne ex-works. However, the upper limit was considered completely unfeasible by buyers.
As a result, the local daily HRC index ex-Northern Europe decreased by €2.92 per tonne to €642.08 per tonne on Wednesday from €645 per tonne on Tuesday.
The index decreased by €6.52 per tonne on a weekly basis and by €2.50 per tonne on a monthly basis.
Market conditions in Italy were similar to those in Northern Europe.
Italian buyers preferred to stay away from trading as they found it difficult to consolidate the downward price increases.
Sources did not rule out a repeat of last year's situation in the European HRC market, when local producers started to phase out capacity to avoid further price declines.
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