The EU automobile industry lacks chips, and white goods manufacturers are also reducing production capacity. At present, the EU infrastructure projects are concentrated in the construction industry. However, due to seasonal factors, market activities are still sluggish.

According to statistics, the September HRC price from Italian mills fell by 2.9% month on month and 3.7% lower than 4 weeks ago.

In addition, imported steel ordered earlier has been piled up at the port before the announcement of the EU Q4 import quota, causing negative sentiment to the domestic market.

Imported HRC in Q4 will flood into the European market, which will have a price impact on local mills. However, Italian mills are still optimistic toward the market trend as the HRC supply continues to be tight.