EUROPE HRC: Reduced end-user demand weighs on prices

October 22, 2021 / www.metalbulletin.com / Article Link

Domestic hot-rolled coil prices across Europe edged down on Thursday October 21 on reduced end-user demand, and trading activity remained limited, sources told Fastmarkets.

The ongoing global shortage of semiconductors has caused automakers in Europe to reduce output and, consequently, to cut flat-steel purchases, market sources said.
Moreover, market participants have suggested that some major automakers are considering halting European operations completely during the fourth quarter of 2021, which in turn would further reduce the demand for flat steel.
As a result, European steelmakers have redirected some HRC volumes to the spot market.

"Spot business is being done by various mills to fill the gaps they have in their production planning due to orders from [the] automotive [sector] that have...

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