Low consumption impacts global HRC pricing and trade

European domestic HRC prices are projected to rise by €30-40/tonne ($32-42) in the coming weeks, reaching €700-720/t in Q4, according to GMK CEO Stanislav Zinchenko, who spoke earlier this month at Kallanish Europe Steel Markets 2024 in Milan. Most sellers expected prices to rise this month, but they have not. Despite a shift in European safeguard regulations and the imposition of a 15% cap per origin over the "other country" tariff-rate quota (TRQ) for hot rolled coil, values have mainly levelled and, in some cases, dropped somewhat.

Some European steelmakers are contemplating price hikes, while others are feeling disheartened by the sluggish demand in various industries. Limited volumes are being ordered by the automobile and white goods sectors. Passenger car registrations in multiple European countries are experiencing a decline, along with production figures in the first quarter. As per a seller of HRC, carmakers are delaying their coil purchasing programmes and the market for coil derivatives downstream remains weak.

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