Coil price downturn likely to continue in Europe
 EUROMETAL  // Coil price downturn likely to continue in Europe

Coil price downturn likely to continue in Europe

Published: 22 May 2023
Coil price downturn likely to continue in Europe

The massive deterioration of coil prices in northwestern Europe seen in the first half of May will not be bottoming out this month, observers in the region believe.

A toxic combination of continued lack of industrial demand and import offers at extremely low prices has hot rolled coil prices from EU mills falling under the €800/tonne ($863) threshold they have exceeded since March. A source at one such mill tells Kallanish of a sale done at €820/t in the second week of May, conceding that higher prices cannot be achieved.

That could have been one of the last deals at a price above €800. He denies, however, that values of around €750 heard from Italy are a reality yet in northwestern Europe. Sources from the buyers’ end in the Benelux give €770/t as the current lower end, but are prepared for lower offers going forward.

“Things can move fast!” one of them remarks, recalling that in April he still believed in stability, if not an increase. “After all, the failure of two blast furnaces at ArcelorMittal and production problems at Tata Steel IJmuiden earlier this spring should have brought supply and demand more into balance,” he reflects. “However, that turned out not to be the case, partly caused by disappointing economic growth in Q1 2023.”

The elemental factor for the downward pressure however comes from Asia, observers agree. “It was only shortly before mid-May that import prices really took a plunge,” a German buyer says. According to the mill source, imports can be had for €150/t less than domestic material.

Christian Koehl Germany

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Coil price downturn likely to continue in Europe

Published: 22 May 2023
Coil price downturn likely to continue in Europe

The massive deterioration of coil prices in northwestern Europe seen in the first half of May will not be bottoming out this month, observers in the region believe.

A toxic combination of continued lack of industrial demand and import offers at extremely low prices has hot rolled coil prices from EU mills falling under the €800/tonne ($863) threshold they have exceeded since March. A source at one such mill tells Kallanish of a sale done at €820/t in the second week of May, conceding that higher prices cannot be achieved.

That could have been one of the last deals at a price above €800. He denies, however, that values of around €750 heard from Italy are a reality yet in northwestern Europe. Sources from the buyers’ end in the Benelux give €770/t as the current lower end, but are prepared for lower offers going forward.

“Things can move fast!” one of them remarks, recalling that in April he still believed in stability, if not an increase. “After all, the failure of two blast furnaces at ArcelorMittal and production problems at Tata Steel IJmuiden earlier this spring should have brought supply and demand more into balance,” he reflects. “However, that turned out not to be the case, partly caused by disappointing economic growth in Q1 2023.”

The elemental factor for the downward pressure however comes from Asia, observers agree. “It was only shortly before mid-May that import prices really took a plunge,” a German buyer says. According to the mill source, imports can be had for €150/t less than domestic material.

Christian Koehl Germany

 

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