EUROPE HRC: Buyers hold back from trading in anticipation of price decline

September 09, 2021 / www.metalbulletin.com / Article Link

Domestic prices for hot-rolled coil were fairly stable across Europe on Wednesday September 8, with both buyers and sellers following a "wait-and-see" strategy, sources told Fastmarkets.

Buyers have been avoiding purchases, anticipating domestic prices for coil to drop under pressure from competitive imports, lower demand from spot buyers and additional volumes that could become available for spot buyers after mills and car manufacturers settle their long-term contracts.
There were several reports of automakers working at reduced rates due to the persistent shortage of semiconductor chips, something unlikely to be resolved this year or even in the first quarter of 2022, sources said.

Italian and most northern European producers, however, held the line on offer prices due to good order books. Only a few mills were able to offer end-of-2021 rolling coil.
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