EUROPE HRC: Domestic prices continue slide on stalled auto sector

September 23, 2021 / www.metalbulletin.com / Article Link

Domestic prices for hot-rolled coil continued to decline across Europe on Wednesday September 22, mainly due to weak demand from the automotive sector and spot buyers holding sufficient stocks, sources told Fastmarkets.

The reduced consumption by car manufacturers was a result of the global shortage of semiconductor chips for onboard electronics, with some volumes of flat steel being redirected to spot buyers in both the EU and in the export markets.
Market sources did not expect the semiconductor chip shortage to end any time soon, and nor will the reduced consumption of steel by the automotive sector.

As a result, spot buyers that already have sufficient stocks preferred to wait before making any new deals. They expected that the additional volumes available in the spot market, combined with restarted European capacities, would result in increased availability of coil and,...

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