Cold-rolled coil, hot-dipped galvanized prices under pressure in ‘phantom’ EU market

Competitive import offers, declining hot-rolled coil prices and poor demand are restricting the potential for the recovery of cold-rolled coil and hot-dipped galvanized prices, steel, market sources said Oct 19.

The CRC and HDG markets continue to be plagued by muted activity across Europe, described by one trader source as “phantom markets.”

“Domestic demand for downstream coils is zero, at least for domestic material,” agreed another trader. “End consumers are not looking for volumes, and imports are available competitively.”

Foreign mills were heard as offering competitively into both North and South Europe, in a range of Eur710-740/mt CIF Antwerp and Southern Europe.

In addition, weakening HRC prices resulted in little to no potential for a rebound in downstream coils, assessed down Eur40/mt on week in Northern Europe.

Platts assessed North European CRC down Eur20/mt on week, at Eur800/mt ex-works Ruhr. In South Europe, CRC was assessed down Eur30/mt at Eur810/mt ex-works Italy.

Platts assessed HDG stable in Northern Europe at Eur850/mt ex-works Ruhr, while South European HDG moved down Eur20/mt at Eur840/mt ex-works Italy.

Some mills were heard as opening offering for the first quarter of 2023 at higher price levels for January delivery coil due to expectations of demand recovery, at around Eur50/mt higher than current offer levels.

Platts is part of S&P Global Commodity Insights.

— Benjamin Steven, Maria Tanatar