CRC, HDG prices in Europe slide on weak end-user demand

Domestic prices for cold-rolled and hot-dipped galvanized coil across Europe were under pressure from weak end-user demand and an unclear post-summer outlook, sources told Fastmarkets on Wednesday July 31.
Subdued demand from major end-user sectors, especially the automotive industry, kept trading quiet in both the CRC and HDG markets across Europe, sources said.

Mills have thin order books, with September lead times still said to be available at some sellers.

Industry sources said that producers who typically focus on sales to the automotive sector have excess tonnage for the spot market due to a lower order intake from end users.

“All of the automotive-centric mills have problems with order books, and this is affecting spot prices [for CRC and HDG],” a buyer in the Benelux area said.

Rare CRC offers from mills in Northern Europe were heard around €730-740 ($790-800) per tonne delivered, equivalent to €720-730 per tonne ex-works, with September lead times.

But buyers’ estimates of tradable prices were closer to €700-720 per tonne ex-works, with transactions reported within that range. Some buyers estimated an even lower achievable price of €695 per tonne ex-works, but this was not widely confirmed by industry sources.

Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe was €700-720 per tonne on Wednesday, down by €10-20 per tonne from €720-730 per tonne on July 24.

For HDG, offers from integrated suppliers were heard at €740-750 per tonne ex-works, but transactions were reported at lower prices — €720-730 per tonne ex-works, and even €710 per tonne ex-works for bigger lots.

“The slide in CRC and HDG prices is mainly caused by a weak auto market, and further developments will depend on how the market restarts after the holidays,” a second buyer said.

Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €720-730 per tonne on Wednesday, down by €10-20 per tonne from €730-750 per tonne on July 24.

No major progress was reported in negotiations for long-term contracts with original equipment manufacturers (OEMs) in the automotive industry for the second half of 2024, sources said.

“It looks like no consensus has been reached [for long-term contracts] yet, but at the same time, that’s why mills don’t want to drop spot prices more,” a second buyer in the Benelux area said.

For the first half of 2024, HDG contracts with OEMs in the automotive industry have reportedly been signed for around €900 per tonne. For the second half-year, OEMs were seeking major discounts of around €100 per tonne, while steelmakers were aiming for a rollover.

“€900 per tonne [for HDG] is no longer possible, but it’s unlikely that mills would step down by €100 per tonne. So, the most possible scenario is that [mills and OEMs] agree somewhere in between,” a third buyer said.

Imports
Overseas HDG offers to Europe were rare, with few suppliers active in the market, sources told Fastmarkets.

Vietnamese suppliers of 0.5 mm HDG with Z120 coating were said to be aiming for $820 per tonne, while Indian mills were heard offering 2 mm HDG with Z140 coating at €740-755 per tonne. Both offers were on a CFR basis to Southern Europe, Fastmarkets understands.

CRC offers from Taiwan, India and South Korea were heard at €665-680 per tonne CFR to Antwerp.

CRC from Ukraine was heard offered to southern Europe at €660 per tonne CFR.

Published by: Julia Bolotova