Lack of demand continues to limit activity in Northern European long steel market
The seasonal summer slowdown further inhibited demand, sources said.
There was little hope of short-term recovery, sources added, with ongoing economic uncertainty and regulatory obstacles resulting in a lack of significant construction activity being initiated.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was unchanged at €620-635 ($690-707) per tonne on Wednesday.
The significant oversaturation of long steel at cut and benders continues to put downward pressure on rebar prices, sources told Fastmarkets, and some mills have started looking further afield within the EU to try and find more receptive markets for their products.
“Poland is a good market now,” a buyer source in the Netherlands said. ”There are fewer regulations for developers to abide by [so] there are more possibilities.”
Scrap prices, meanwhile, have continued to fall since the beginning of the month due to the recent downturn in Asia-origin billet import prices, which has, in turn, lowered feedstock costs for European long steel mills.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey, was $361.15 per tonne on Wednesday, down by $5.99 per tonne week on week, and down by $22.50 per tonne month on month.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, meanwhile, was unchanged at €615-650 per tonne.
Mills have maintained steady wire rod prices across Europe since July, sources said, adding that small price declines could be expected when mills fully reopen after their summer closures.
“Mills have rolled over prices for the Summer break, [but] we could start to see offers that are €10-15 lower than the current prices for September,” a wire rod producer source said.
Published by: India-Inés Levy
Southern Europe long steel markets remain quiet amid seasonal closures
While some mills have reopened following their summer holiday breaks, other mills will return only by the beginning of September, market sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, exw Italy, was €610-630 ($679-702) per tonne on Wednesday, widening downward week on week from €620-630 per tonne.
Minimal activity in the construction sector resulted in poor demand, which in turn resulted in small price declines in the Italian rebar market.
Market participants forecast that activity would begin to pick up in September when the market reopened after the summer absences.
“The downtrend we had before the summer holidays seems to go on, and now we have no signals from mills of a new price increase. Demand remains low but we hope that, next week, when all customers open [for business], the market will wake up,” a buyer source from the region said.
“The market is still very weak, but activity is picking up very calmly,” a producer source said.
“I think that this week will be quiet while construction sites slowly resume work,” a second buyer source said.
Meanwhile, scrap prices have continued to fall since the beginning of the month due to a recent downturn in prices for Asia-origin billet imports.
This has in turn lowered feedstock costs for European long steel mills.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $361.15 per tonne on Wednesday. This was up by $5.99 per tonne week on week, but down by $22.50 per tonne month on month.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, was €630-640 per tonne on Wednesday, down week on week by €10-15 per tonne from €645-650 per tonne.
Tradeable values for small volumes were reported by market participants in the Spanish market at €630 per tonne. There was minimal demand, however, especially for large quantities.
Southern Europe wire rod
Meanwhile, Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was €625-640 per tonne on Wednesday, unchanged since June 12.
European mills have been keeping prices stable in the Southern Europe wire rod market, trade sources said. But small decreases could be expected when the mills reopen after the summer closures, Fastmarkets heard.
“Mills have rolled-over prices for the summer break,” a wire rod producer source said. “However, I think we could start to see offers for September that are €10-15 [per tonne] lower than current prices.”
Published by: India-Inés Levy
SSAB appoints Johnny Sjöström new chief executive
Johnny Sjöström, currently head of the SSAB Special Steels division, has been appointed president and chief executive of SSAB, Kallanish learns.
He will start in his new position on 28 October, succeeding Martin Lindqvist who previously announced he is leaving the company for a board career. Sjöström has been head of SSAB Special Steels since 2019. In that role, he has worked to develop and grow the company’s business for special steels and overseen the green transformation of SSAB’s steelworks in Oxelösund. He was formerly ceo of Uddeholm and held different management positions at Outokumpu Stainless Oy.
Sjöström “has solid technical knowledge and extensive experience within the industry in the Nordic region and internationally,” says Lennart Evrell, SSAB chairman. “With his background and experience, he is the right person to lead SSAB forward.”
Lindqvist will remain president and ceo until 27 October.
Christian Koehl Germany
French construction sentiment improves slightly
Sentiment among French construction companies improved slightly in August. According to L’Institut National de la Statistique et des Études Économiques (Insee), construction companies active in both structural works and finishings reported a slightly more positive business climate and an improved attitude towards their future but also their past activity.
The sentiment improvement however remains moderate as “economic uncertainty felt by construction managers is virtually stable”, says an Insee report obtained by Kallanish.
In August, construction companies’ order books are considered stable. Given their staff size, the firms surveyed reported eight months of work. Production capacity was stable on-month, while 44% of firms reported slowing output because of supply difficulties.
Production bottlenecks are continuing. The same number of business managers as in July are facing obstacles which limit their production capacity. About 18% of construction firms consider themselves unable to increase their production in case of additional orders due to a lack of personnel and supply difficulties. About 42% of companies reported being at the limit of their production capacity and 32% report they are facing “insufficient” demand. The production capacity utilisation rate has slightly decreased this month, Insee concludes.
The situation in France for steel consumption downstream continues to be subdued. The distribution sector is seeing a challenging year. The main concern revolves around tight margins, French distribution sources say.
Some improved demand has however been reported for rebar in July and August, with orders coming in and production levels rising slightly. Activity has not properly resumed this week after the August summer break. One distributor says buyers are now in a wait-and-see mood. Market participants expect a clearer direction next week.
Natalia Capra France
US confirms AD determination on French plate
The US Department of Commerce has settled upon an antidumping margin of 0.0% for cut-to-length carbon and steel plate from French producer Dillinger France.
The determination is consistent with Commerce’s preliminary assessment, Kallanish learns from the Federal Register.
Commerce found that during the period of review, May 2022 through April 2023, the producer made no shipments.
The subject products under review fall into the Harmonized Tariff Schedule of the US (HTSUS) subheadings 7208.40.3030, 7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, 7226.91.5000, 7208.40.6060, 7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.10.0000, 7214.30.0010, 7214.30.0080, 7214.91.0015, 7214.91.0060, 7214.91.0090, 7225.11.0000, 7225.19.0000, 7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 7225.99.0010, 7225.99.0090, 7226.11.1000, 7226.11.9060, 7226.19.1000, 7226.19.9000, 7226.91.0500, 7226.91.1530, 7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 7226.91.8000 and 7226.99.0180.
Kristen DiLandro USA
Turkey: July steel exports value hits record high on EU demand
The value of Turkey’s steel exports rose 24% year on year to a record high of $1.4 billion in July due to EU demand, Mediterranean Ferrous and Non-Ferrous Metals Exporters’ Union Chairman Fuat Tosyali said Aug. 28 without citing tonnages.
“Especially Mediterranean-based Turkish steel producers increased their exports significantly, by 171% on the year, to $259 million in July,” said Tosyali, who is also CEO of major steelmaker Tosyali Holding.
Steel exports to some EU countries, particularly Italy and Spain, increased substantially in July despite EU quotas, he said, adding that Turkey’s higher steel production also supported exports. The chairman expects the market to be more buoyant in Q4.
Tosyali Holding’s 4 million metric tons per year quantum electric arc furnace-based flat steel mill started production in January, while some other large producers also recently increased steel capacities.
Turkey’s January-July crude steel production rose 14.9% on the year to 21.7 MMt, according to World Steel Association data.
Platts, part of S&P Global Commodity Insights, assessed Turkish HRC at $570/mt ex-works Aug. 23, down 20% since the start of 2024.
European HRC prices remain steady amid lackluster demand
Prices for domestic European hot-rolled coil remained steady on Aug. 28 amid lackluster demand and no signs of a price recovery.
“Offers are the same,” a service center source said. “I don’t see it getting any better.”
Market participants continued to express uncertainty around the outlook of the market. While some downturn in demand is normally expected in the summer months, sources remained worried that there have been no signs of a rebound in activity or demand, despite people returning from holidays.
“We reached a point that is not a typical summer,” a second service center source said. “That is what I hear from [all market participants.]”
Sources also remained unsure about mills’ reaction to current market conditions. Some are of the opinion that the solution at hand is to reduce capacities to restore equilibrium to the market, while others believe there is still room for prices to decrease as domestic mills compete with import prices that are becoming increasingly competitive.
Platts assessed Northwest European HRC at Eur595/mt ex-works Ruhr Aug. 28, stable on the day.
Offers were reported at Eur595-600/mt ex-works Ruhr, and at Eur625/mt DAP NWE.
Tradable values were reported at Eur590/mt ex-works Ruhr, and at Eur595-605/mt ex-works NWE.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur595/mt ex-works Italy Aug. 28, also stable on the day.
Tradable values were reported at Eur595/mt ex-works Italy.
Consumer interest for imported material remained at a crossroads, with many not prepared to take on the risk of safeguard measures and the subsequent duties involved, market sources said. However, some mills in Asia have started offering to pay up the safeguard duties, making such imports much more competitive.
“Nowadays nobody knows what is going to happen with [Asian] countries import quota,” a distributor source said.
Platts assessed imported HRC in NWE stable on the day at Eur559/mt CIF Antwerp.
Offers for China-origin material were reported at Eur560/mt CFR Antwerp, including antidumping duties. Offers for Vietnam-origin material were reported at Eur550/mt CFR Antwerp.
Meanwhile, Platts assessed imported HRC in South Europe stable on the day at Eur565/mt CIF Italy.
European prices for downstream flat steel slide on insufficient demand
Mills were hoping for restocking, but it was only likely to happen in the second half of September and would probably be limited, sources said.
“Most buyers have sufficient stock and, in fact, are trying to reduce their inventories,” a trading source in Europe said. “My impression is that, due to low activity in the construction market and the threat of a downturn in the automotive sector, nothing spectacular will happen. Besides, high interest rates don’t stimulate investments.”
Mills in Northern Europe could still offer CRC and HDG for October delivery, which indicated weak order books.
Firm offers were rare, and mills were conducting business on a “case-by-case” basis.
Buyers’ estimates of tradable prices for CRC were reported at €690-700 ($767-778) per tonne ex-works.
Offers were reported at €700-720 per tonne ex-works in Germany and the Benelux area.
Fastmarkets’ assessment for steel cold-rolled coil domestic, exw Northern Europe was €690-700 per tonne on Wednesday, down by €5-10 per tonne from €695-710 per tonne on August 21.
European suppliers said that they usually produce less CRC and focus on HDG output instead, which has a higher added value.
“In the CRC market, imports are dominating, and we cannot match the import price [for CRC],” a mill source said.
CRC offers from Japan and South Korea were heard at €635-650 per tonne CFR to Europe.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €710-720 per tonne on Wednesday, widening downward by €5 per tonne from €715-720 per tonne on August 21.
For HDG, offers from integrated suppliers in Northern Europe were heard at €715-720 per tonne ex-works, with transactions reported at the low end of the range.
“HDG sales are going slowly, mainly because of a weak automotive sector,” a second mill source said.
Buyers’ estimations of achievable prices were lower, at €700-710 per tonne ex-works.
Offers for 0.5 mm HDG with Z140 coating from Vietnam were heard at €730 per tonne CFR to Antwerp.
Published by: Julia Bolotova
HRC prices stabilize in Europe, direction unclear
Trading in the spot European HRC market was slow on Wednesday, with only sporadic bookings heard.
“Demand [for HRC] is very poor. Because of [continuing] holidays in France and because of the ‘cold’ market,” a buyer in Northern Europe said.
Buyers in Northern Europe estimated tradeable values for October-delivery HRC at €580-590 ($648-659) per tonne ex-works.
Firm offers were still rare, since suppliers preferred conduct business on a “case by case” basis, according to sources.
“Some suppliers still talk about price increases in September. But it doesn’t seem likely – the market is too weak for that,” a second buyer said.
Several sources reported offers for October-delivery HRC from a Benelux-based supplier at €600-620 per tonne ex-works, depending on the tonnage.
Another supplier in the region was said to be offering HRC with the same lead time at €570 per tonne ex-works.
Sources said that they only expected limited restocking in September.
“In fact, destocking is still taking place; in the downstream market, SCCs (steel service centers) are competing for volumes,” a source at a SSC in Germany said.
Sources added that a mill-owned SSC was selling hot-rolled sheet at aggressive prices, with transactions reported at €650 per tonne delivered and even €630 per tonne delivered in Germany.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €597 per tonne on Wednesday, down by €0.50 per tonne from the previous calculation of €597.50 per tonne on Tuesday.
The Northern Europe index is down by €10.00 per tonne week on week and by €31.67 per tonne month on month.
Fastmarkets’ corresponding daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €595.00 per tonne on Wednesday, unchanged from a day earlier.
The index is down by €5.00 per tonne week on week, and by €25.00 per tonne month on month.
The Italian market was said to be “restarting slowly” after the traditional summer break.
A major local integrated supplier has yet to announce new offers for October-delivery HRC.
But two sources reported that one local mill was testing the market with an offer of €610-620 per tonne CPT (€600-610 per tonne ex-works).
Buyer sources in Italy estimated the current workable price to be around €580-600 per tonne ex-works.
One Europe mill was heard offering HRC to Italy at €590 per tonne delivered.
Import offers from Asia to Europe remained scarce amid safeguards-related risk and pending anti-dumping investigation against several origins, sources said.
Sources reported an offer from India for late October-shipment coil at $620 per tonne CFR.
An offer from South Korea was heard at €590 per tonne CFR – a price deemed unworkable by Italian buyers, since it is in line with what EU mills could offer.
Published by: Julia Bolotova
Sarralle’s new long products plant goes into operation
Spain-based technology supplier Sarralle’s new long products meltshop has begun full operation, Kallanish learns from the company. The facility has an annual production capacity of 720,000 tonnes.
“This is our last greenfield reference project around the world as a key player in the international steel industry,” Sarralle says.
The new meltshop has been designed with a 100-tonne electric arc furnace that will use 90% direct reduced iron charge. The greenfield project’s equipment also includes a 100t ladle furnace, a five-strand caster, material handling technology and a fume extraction system with a capacity of 1.5 million Nm3/h.
Sarralle Group operates in the areas of steelmaking, rolling and coil processing, and engineering solutions for different sectors, such as energy and environment.
Todor Kirkov Bulgaria
