European hot-rolled steel plants are reducing their supply

According to Fastmarkets sources, on Wednesday, May 28, prices for hot-rolled coils in Europe as a whole did not change, and the trading volume was still low. Leading European suppliers have reduced their offers to about €650 ($686.71) per ton of ex-works from €700 per ton of ex-works. The largest factories in Northern Europe offered rolls for delivery in July at a price of about €640-650 per ton ex-works or with delivery. Rolls of Italian origin were offered in Germany at a price of 640-650 euros per ton with delivery. Transactions were carried out at a price of 620-640 euros per ton on a free-of-charge basis in Germany and the Benelux countries, and buyers' estimates of market value were 620-630 euros per ton on a free-of-charge basis. "European factories are chasing orders before the summer holidays. The situation with the order portfolio of some manufacturers does not look good; there are gaps that need to be filled, and buyers are holding back in a falling market," one of the buyers in Germany told Fastmarkets. "Some suppliers even sell the rolls below cost to generate cash flow." Trading was sluggish, and buyers remained cautious, booking large shipments in the face of market instability. "The demand for marketable hot—rolled rolled steel is weak, and the summer holidays are ahead of us, so an improvement in the situation is unlikely," a distributor source said. Fastmarkets' calculation of the HRC daily steel price index in the domestic market, the franco-plant of Northern Europe, on Wednesday amounted to 628.75 euros per ton, which is 0.18 euros per ton more than 628.57 euros per ton on May 27. The index decreased by 4.58 euros per tonne over the week and by 27.25 euros per tonne on a monthly basis. The daily HRC steel price index from Fastmarkets in the domestic market, franco-plant Italy, was 600 euros per tonne on Wednesday, down 1.25 euros per tonne from 601.25 euros per tonne on Tuesday. The Italian index decreased by 5.00 euros per tonne over the week and by 27.50 euros per tonne on a monthly basis. In Italy, trade was also sluggish. Buyers estimated the achievable prices at 590-600 euros per ton on a free-to-plant basis, while the offers were at 620 euros per ton on a free-to-plant basis. Meanwhile, the import prices of hot-rolled coils to Europe remained virtually unchanged in the week before Friday. According to the sources, despite the large gap with domestic prices, large buyers are considering the possibility of import orders due to the risks associated with protective measures. "Indonesia offers production in July with shipment in August for HRC. This means that[HRC]will arrive in Europe in September, and chances are high that it will only be able to be cleared on January 1, 2026, to circumvent security measures. And[The mechanism for adjusting the border regulation of emissions