Data shows that in the last week of October, HRC prices in Northwest Europe reached 570 euro per tonne, a 10 euro increase w-o-w. Sources speaking to SteelRadar indicated this rise stems from supply-side factors rather than healthy demand growth.
The situation is calmer in Southern Europe, with prices remaining stable at 555 euro/tonne in Italy. Import activity is similarly subdued. Industry representatives express concern about the future despite price increases, citing low demand and reduced government support as contributing to uncertainty.
Despite low consumption, there's no downward pressure on prices. Experts attribute this to CBAM regulations, quotas, and anti-dumping investigations, which make imports risky while benefiting domestic producers.
Major steel producers are proposing ambitious price offers for the first quarter of 2024, but these haven't yet been accepted by buyers. Long-term contract negotiations with the automotive sector are influencing price expectations. While a temporary recovery is anticipated in the first half of 2025, this is overshadowed by the automotive sector's slowdown and overall weak demand.
The European HRC market faces short-term uncertainty, with supply-side factors, geopolitical risks, and protectionist measures shaping prices.
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