UK hot-rolled coil (HRC) prices softened this week on low demand and a weakening sheet market.

Argus' weekly UK HRC assessment dropped by £10/t to £540/t ddp West Midlands for S275-grade material.

Service centres said they can achieve £550/t ddp for European HRC, down slightly from recent weeks, as mills are more eager to make sales after a quiet period where some buyers preferred to book cheaper imports. Traders have trimmed their ex-stock offers to move material. One trader sold a few truckloads of Vietnamese HRC at £510/t ddp Midlands last week.

Sheet prices are also under pressure. Service centres surveyed by Argus said May was quieter than April, increasing competition for sales. Outsell prices for processed sheet have fallen to £560-570/t ddp, down by about £30-40/t over the past month, straining margins further for service centres. With summer approaching, many buyers remain cautious, forecasting demand to remain stable at low levels.

Korean cold-rolled coil was still being offered at aggressive prices close to HRC. Traders and buyers reported offers at £550/t ddp effective for October-November arrival, compared with European levels of about £590/t ex-works base.

Import uncertainty

Market participants remain uncertain about the UK's import safeguard measures.

The UK Trade Remedies Authority recommended the imposition of a 40pc cap, but UK Steel has reiterated its calls for a 15pc cap, and some expect the Secretary of State will impose a 25pc cap. There is also a lot of focus on potential anti-dumping cases on hot-dip galvanised. Some sources suggest there could be an investigation launched against Asian sellers, including Vietnam and potentially Korea and Taiwan. Current Vietnamese offers are about £75/t cheaper than European offers, a service centre said.