Hamburg, Germany- In December 2023, the price of Hot Rolled Coil increased in the European spot market as the demand from the infrastructure sector remained firm amidst a decrease in supply. The major manufacturers of Hot Rolled Coil across Europe are decreasing their production rate in several mills. This was backed by the downstream demand outlook, which has previously been on a plunging trend in the local European and overseas markets. Market participants are mainly focusing on clearing their existing inventories in order to secure their margins from the fresh stocks. The manufacturers and consumers are currently in talks for signing the deal for next year 2024, including the key carmakers, automotive suppliers, and other Original Equipment Manufacturers (OEMs) for future contracts.

The supply of Hot Rolled Coil in domestic warehouses across Europe has been on a lower edge as the major mills are lowering their output. The previous decline in demand incited the mills to lower their output as the production cost was going on a declining trend amidst low raw material cost and cheap renewable energy across Europe, which became a loss-making factor for large Hot Rolled Coil manufacturers. Italian Acciai Speciali Terni has announced to implementation of a longer production stoppage this year for the Christmas holiday break. The hot rolling mill is said to be idled from 19 December until 7 January. As per a senior member of their higher authority, the cessation is attributed to the overall downturn in the steel market and the elevated energy expenses that AST must bear in comparison to its rivals. Economic uncertainty and slow orders are hitting Italian Steel margins and volumes. Demand continues to be sluggish, but processing costs are simultaneously increasing, local steel trade association Assofermet warned last month.

The mills across Europe are trying to push the prices higher, whereas the demand is still on the lower end from the domestic buyers as the dealers have already restocked when the Hot Rolled Coil prices were down in previous weeks. In the meantime, the import volume has been relatively low, as the European Commission recently completed its assessment of the prevailing anti-dumping duties on Hot rolled coil imports from Brazil, Iran, and Russia. The Commission has affirmed that these duties will be maintained. The tendency of rising supply is anticipated to risk the rise in price for Hot Rolled Coil across the European spot market.

According to ChemAnalyst, the price of Hot Rolled Coil is anticipated to be on a slowly rising trend as the market sentiment seems to be uplifting. Moreover, the decline in production in Major Hot Rolled Coil producing industries is anticipated to be a major factor for the rise in Hot Rolled Coil price. The decline in import quantity from overseas markets such as Brazil, Iran, and Russia is restricted by the European Union, giving hope for the rise of domestic Hot Rolled Coil industries.