EUROPE HRC WRAP: Bearish mood prevails on low demand from automotive, high import volumes in ports

Weakening sentiment in the European hot-rolled coil market has been driven by reduced demand from the automotive sector and high volumes of imports awaiting customs clearance, sources said during the week to Friday September 17.

European automotive manufacturers are unlikely to consume coil products at the rate previously expected due to the knock-on effects of the global shortage of semiconductor chips for vehicles' onboard electronics.
As a result, higher volumes of coil are expected to be available in the spot market, supporting a price decline.
Producers have accepted lower spot prices for smaller lots of HRC that had not been delivered to automotive buyers under long-term agreements.
In addition, buyers are awaiting the start of the new European Union import quota period on October 1.

Massive volumes of steel products are sitting in EU ports awaiting customs clearance at the start of the next quarter. These coil...

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