Hot-Rolled Coil Prices Continue Slide in Europe Amid Weak Demand

 Hot-Rolled Coil

Buyers Hold Off as Inventory Levels Remain High and Imports Undercut Domestic Offers

European hot-rolled coil (HRC) prices fell further on June 10, reflecting continued sluggish demand and mounting inventory levels. Fastmarkets reported that its daily domestic HRC index in Northern Europe dropped to €600.83/tonne ex-works, down from €606.38/tonne the previous day. Mills were pushing for deals above €600, but actual transactions hovered at or just below this threshold.

In Southern Europe, particularly Italy, the same bearish trend persisted. Fastmarkets calculated Italy’s domestic HRC index at €585/tonne ex-works, compared to €587.92/tonne on June 9. The ongoing market softness suggests further downside risk in the near term, especially as buyers refrain from restocking.

Fragmented Consumption and Import Pressure Amplify Price Weakness

A lack of coordinated buying activity and ample domestic availability are weighing heavily on sentiment. “Consumption is very fragmented… while buyers’ stocks are higher than usual,” a European buyer told Fastmarkets. This has translated into aggressive bidding, with some buyers submitting offers as low as €550/tonne ex-works.

Meanwhile, import pressure continues to erode domestic mill margins. Indonesian hot-rolled coil was offered into Italy at €490–500/tonne CFR, while Turkish and Indian coils entered the market at €520–540/tonne duty paid CFR. These sharply lower prices are anchoring buyer expectations and reducing interest in local supply.

Mills Struggle to Hold €600 Floor as Imports Gain Traction

Despite efforts by mills to maintain pricing above €600/tonne, the combined impact of slow demand, elevated inventory, and cheap imports is undermining their position. The market remains in a hand-to-mouth buying pattern, with end users delaying purchases in anticipation of further declines.

If current trends persist, Europe’s HRC producers may face additional pricing pressure and potential production cuts. Seasonal slowdowns and regulatory costs—such as the upcoming CBAM mechanism—could further complicate recovery efforts in the second half of 2025.

ScrapInsight Editorial Commentary

The current HRC pricing environment highlights structural weaknesses in European steel demand. With aggressive import competition and hesitant restocking, domestic mills may soon need to choose between margin compression and capacity adjustments. Without a demand catalyst, the €600/tonne level may not hold.