European hot-rolled coil producers have been under severe pressure from subdued demand and high raw materials costs, sources told Fastmarkets on Wednesday June 10.
Market activity has been low due to a combination of well-stocked distributors and a lack demand from end users, including those in the automotive industry.
"Most automotive subcontractors have enough to do at the moment as carmakers have restarted productions, but they expect lower demand [for the next] two or three months because car sales are very depressed," a Northern European distributor said.
Sales of passenger cars in Europe tumbled by 76.32% year on year in April 2020, marking the fourth consecutive month of decline, according to data released by the European Automotive Manufacturers Association (ACEA).
Fastmarkets'
daily steel hot-rolled coil index, domestic, exw Northern Europe was ?,?397.92 ($449.95) per tonne on Wednesday June 10, down by ?,?1.01 per tonne from ?,?398.93 per tonne on Tuesday.
The index has fallen by ?,?4.08 per tonne week on week and by ?,?22.91 per tonne...