According to market sources, import prices remain under pressure due to the EU's quota system, while domestic steel prices continue to show an upward trend. However, buyers are reportedly reluctant to return to the market amid persistently high inventory levels.
Industry representatives note that many companies across Europe are unwilling to engage even in delivered-duty-paid (DDP) transactions, as excessive stock accumulation continues to weigh on purchasing activity.
Against this backdrop, purchasing hot-rolled coil (HRC) from Europe in July may present opportunities for buyers. Nevertheless, market participants believe the current imbalance is unlikely to ease before September. Conditions are expected to improve gradually as inventories decline and the quota system becomes more predictable, with a broader normalization of market fundamentals anticipated by November.
On the pricing side, European mills are reportedly offering HRC at around EUR 720/t, while actual transaction levels are being concluded closer to EUR 680/t. Meanwhile, freight costs from port locations have risen to approximately EUR 40/t, adding further pressure to trade flows.
Overall, market participants expect the European steel market to remain characterized by weak demand, elevated inventories and limited trading activity throughout the summer months. A meaningful recovery is not anticipated before the final quarter of the year.
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