The negative trend for global hot-rolled coil prices first witnessed during the summer is continuing, despite the recent pick-up in raw material values, especially that for iron ore.

Last week the Black Sea HRC price fell further to reach the lowest level since November last year. In March this year it reached a peak above $610/tonne fob Black Sea, but since then the market has lost some $100/t and the negative trend could continue further in the coming weeks.

Similarly, Chinese HRC export prices are down to last November levels. Mills attempted to increase their export offers slightly last week to bring some fresh momentum into the market. Buyers have not yet accepted the new levels due to strong international competition and weak sentiment in many major importing countries.

In Europe, Italian HRC prices accelerated their fall in mid-September while North European levels are sliding slowly. The sector could well benefit from the fact the European Commission is expected to confirm the existing safeguard measures for a period of three more years. Nevertheless, trading difficulties in the European automotive market are impacting market sentiment and hence the underlying demand for steel.