UNITED KINGDOM January 08 2016 9:35 AM

LONDON (Scrap Register): North and South European HRC prices fell to new lows since TSI began coverage, finishing November at €317 a ton and €282 a ton respectively. Although pressure from imports lessened, weak domestic demand continued to drag prices lower, as per the Steel Index.

Coil prices in Northern Europe continued their ascend as TSI’s benchmark HRC index hit a new low of €317 a ton by the end of the month.

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Seeing steady declines in spot prices for the last few month, buyers were hesitant to place new orders, slowing down demand. 

Producers reacted by lowering their asking prices, and by the end of November HRC prices stabilised within a wide €310-325 a ton range (depending on mill), with some Eastern European mills offering about €10/t lower. 

Market participants started to question if this level can become a price floor, citing unchanged import offers from China and low inventory levels.

After significant falls in the previous months, Southern European HRC prices remained steady between €280-290/t for most of November. 

After domestic producers reduced their asking prices close to the level of import offers, the market stabilised, although demand continued to be subdued. In mid-December some of the producers announced that they were going to increase their offers, but spot prices were practically unmoved, and TSI South European HRC index closed at €282 a ton. 

A weak euro continued to keep imports into the region at bay. Chineseorigin HRC imports were heard to be offered at €285-290/t CIF Italy; Iranian-origin material was more competitive, with asking prices reported around €270 a ton CIF Italy.

(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)