European steel producers expect prices to improve

The price of hot rolled coil (HRC) has bottomed roughly, and Italian mills have also started to increase their offers.

Currently, the stock in the domestic market has not been digested, so the price increase strategy of the producers cannot be effectively guided by the current trend.

On the other hand, the 2023 supply contract between local manufacturers and automakers has not reached a consensus yet. Automakers hope to negotiate at the current price level, but steelmakers do not want to sell at low prices.

In terms of imported HRC, the Indian government has canceled the export tariff, prompting European distributors to purchase large volumes recently, so the quota for the first quarter of next year may be exceeded.