European HRC buyers are reportedly not restocking amid expectations of lower prices and slowing demand as well as uncertainty over the European Union's (EU) import quotas for the second quarter. As the European HRC market has been stagnant since early February, sources reported that only small tonnages have been purchased in Europe in anticipation of an impending decrease in local prices.
They also pointed out that it is important to determine how much imported HRC will be cleared and what tariff rates will be applied as of April 1 under the EU safeguard measures, adding that they are waiting for more precise information on the import volumes to be applied in the second quarter.
According to SteelRadar data, the highest price for HRC [EN 10025] in the week to March 18 was €730 in Spain, while the same grade was down €5 in Germany, where it was traded at €705. However, in Italy, the 2-3mm CFR Antwerp price was also down by €10 to close the week at €600.
Sources expect these decreases to continue until the second quarter import quotas are clarified.
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