Hot-Rolled Coil Prices Remain Stagnant in the European Market
- 26-Sep-2022 2:48 PM
- Journalist: Patrick Knight
Germany: Hot-Rolled Coil prices in Europe showcase a stable trend from the previous week due to increased inventory and a limited demand outlook. Furthermore, a variety of factors continue to dampen demand for flat-rolled products. These factors include slowing public works programs across Europe in the face of rapidly rising energy prices and lower consumer spending amidst economic uncertainty.
According to traders, the most recent flat-rolled product transactions occurred at USD 740-750/MT EXW for October or November delivery. Additionally, the deals for Hot-Rolled Coil occurred in earlier September at around USD 750/MT for the same rolling and delivery times.
ArcelorMittal attempted to raise its offer price for a flat rolled product to USD 850/MT in earlier September. However, the Luxembourg-based group prices settled at USD 810/MT last week due to low demand. Imports from Southeast Asia have also impacted the market, with transactions of Hot-Rolled Coil from Vietnam taking place at USD 680-685/MT CIF Bilbao and Antwerp, January delivery.
According to ChemAnalyst, Hot-Rolled Coil prices will continue to fall, reaching around USD 650 by the end of the year despite Europe's unusual economic situation. Although Hot-Rolled Coil prices tend to rise at this time of year as buyers try to hedge against January mill price increases. In response to market conditions, European producers have announced plans to temporarily or indefinitely reduce Hot-Rolled Coil production. The demand for flat products in Spain is currently at 40% of normal levels or approximately 8 million metric tonnes. This decrease is primarily due to European governments' efforts to contain rising prices and avoid shortages. The European Commission also plans to raise USD 138 billion from energy companies' profits and mandated energy use reductions. European gas stocks are also above the five-year average at 86%, although Gazprom has suspended flows through its Nord Stream pipeline indefinitely. This line runs from Vyborg in northwest Russia to Lubmin in eastern Germany beneath the Baltic Sea.