The spread between European hot-rolled coil steel and raw materials prices in June contracted sharply to start to test steelmakers' profitability, narrowing 19% from May as spot steel prices and demand weakened further.
HRC prices continued to decline in June, at a faster pace, in their second consecutive monthly decline, according to a July 3 analysis by S&P Global Commodity Insights.
The Northwest Europe HRC steel to raw materials spot spread narrowed to average Eur396/mt ($428/mt) in June, from Eur490/mt in May, according to S&P Global estimates.
The euro weakened to average $1.08 in June, affecting overall higher costs in dollar-denominated raw material imports.
