European hot rolled coil steel prices continued their downward trend on Monday (5 June) due to extremely weak demand, but the market has not yet reached the bottom.
The flat plate market in Italy has not yet bottomed out. Import HRC prices are currently said to be stable at €570-600 CFR. Regulation for local prices continues in Europe. Prices are currently seen at €650-700 EXW. Italian HRC buyers are also refraining from restocking.
The local daily steel HRC index, excluding Northern Europe, decreased by €13.75 per tonne to €723.33 ($774.40) per tonne on Monday from €737.08 per tonne on Friday.
Integrated mills in Germany are said to be offering coils at €750 per tonne ex-works.
Offers from an integrated mill in the Benelux region were reportedly around €740-745 per tonne ex-works.
Market sources said that European producers were ready to accept discounts "up to a certain level" to follow lower import prices. Buyers, however, maintained a wait-and-see attitude in anticipation of further price decreases, with mostly hand sales reported recently.
Most market sources expect HRC prices to bottom in June, but most do not expect HRC prices to decrease below €700 per tonne ex-works.
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