The HRC market has been stagnant in Europe for a long time. EU steel producers were preparing for June with the expectation that prices would fall in a period of weak demand. However, with the Commission's TRQ amendment, imports from third countries are expected to decrease further, which encourages domestic producers.
According to SteelRadar data, German HRC prices fell by EUR 10 to EUR 635 in the week to 3 June. Subsequently, German CRC prices fell significantly by EUR 30 to EUR 725.
With low inventories and demand expectations, HRC prices in Europe are expected to increase in the coming period. Optimistic forecasts for international coil prices indicate that the market may enter a technical restructuring process.
Southern European HRC and CRC prices follow a similar trend...
According to SteelRadar data, HRC prices in Spain dropped by a significant EUR 30 to EUR 645, while CRC prices fell by EUR 5 to EUR 795. Contrary to expectations, the low level of market demand has a negative impact on the profit margins of producers. In particular, consumers' preference for low prices increases competition in the sector and reduces profit margins. Italian HRC and CRC prices also continue to decline. While Italy HRC prices were calculated as 630 EUR with a decrease of 15 EUR, Italy CRC prices decreased by 10 EUR and prices were calculated as 745 EUR.
In the light of all these developments, the steel industry in Europe continues to be closely monitored. It seems that the balances in both local and international markets will be decisive on prices in the coming period.
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