UK hot rolled coil prices fall as mills sell at a loss

Domestic UK hot rolled coil prices fell slightly in the week ending July 18 as some producers were forced to sell at a loss to stimulate demand.
“The hot-rolled market has been completely destroyed,” said a source at the service center. “There is too much of it. Demand will remain the same as it is now until the end of the summer.”

Market sources remain pessimistic for the rest of the year, expecting prices to rise slightly towards September. They don't expect demand to increase significantly until next year.

Some sources say there may be gaps in price gains, especially as many believe prices have bottomed out, but the time frame for this remains unclear.

“People have been very cautious buyers,” a trading source said. “At some stage there will be gaps, but the question is when.”

Platts priced UK HRC at £580/t DDP West Midlands, down £15 on the week.