Demand for CRC, HDG in Europe outpaces supply, drives prices up further

Prices for steel cold-rolled and hot-dip galvanized coil across Europe rose further in the week to Wednesday March 22, with limited supply still seen as a major driver, sources told Fastmarkets.
Good order books at local mills, stretching lead times and limited imports have continued to drive up CRC and HDG prices across Europe.

Most mills in Europe could offer June-July delivery CRC and HDG coil, while some German mills were said to be completely sold out of June-delivery material.

One of the factors contributing to the supply tightness is a force majeure declaration on CRC deliveries by Tata Steel Ijmuiden in late February.

The producer reportedly booked about 10,000 tonnes of CRC in Germany to feed its galvanizing line, several sources said.

Except for Tata Steel, there are several other suppliers out of the market for CRC and HDG deliveries, sources said.

“There are technical issues at NLMK in Belgium [and] Liberty’s Dudelange is also unable to perform,” a trading source told Fastmarkets.

Producers in Northern Europe were offering HDG at €970-990 ($1,043-1,064) per tonne EXW and CRC at around €950 per tonne EXW.

Buyers reported bookings of CRC at €930-950 per tonne EXW and at €960-990 per tonne EXW for HDG coil during the assessment week.

Mills sources claimed they had a “healthy” order intake from the automotive industry and therefore suggested there was room for further price rises in April.

No fresh offers were heard from Italian suppliers to the region, however, the price idea voiced by suppliers was no lower than €980 per tonne delivered.

Fastmarkets’ weekly price assessment for steel CRC domestic, exw Northern Europe was €930-950 per tonne on Wednesday, narrowing upward by €10 per tonne from €920-950 per tonne on March 15.

Fastmarkets’ corresponding weekly price assessment for steel HDG domestic, exw Northern Europe was €960-990 per tonne on Wednesday, up by €10-20 per tonne from €950-970 per tonne on March 15.

Southern Europe
Firm offers for CRC and HDG coil were scarce in the Italian market this week, with one integrated mill in the nation said to be focused on the production of higher value-added grades rather than commodity grades.

CRC offers in the region were heard at €950-970 per tonne delivered (€930-950 per tonne EXW), while HDG offers came in at €970-990 per tonne delivered (€950-970 per tonne EXW).

Fastmarkets’ weekly price assessment for steel CRC domestic, exw Southern Europe was €920-940 per tonne on Wednesday, widening upward by €10 per tonne from €920-930 per tonne on March 15.

The corresponding weekly price assessment for steel HDG domestic, exw Southern Europe stood at €940-970 per tonne on Wednesday, widening upward by €20 per tonne from €940-950 per tonne on March 15.

Both assessments reflect the lower end of offers, rare deals and estimates of achievable prices.

Some overseas CRC suppliers had been trying to increase offer prices to Europe during the assessment week, but have not been successful so far.

Notably, a producer from South Korea had reduced offers from €860-865 per tonne CFR to about €840-850 per tonne CFR during the week. The offer was standing for June-shipment coil.

Long lead times were limiting buying interest for overseas coil, however.

“Import coils bought now would be [in Italy] for September use already, since August is a holiday period and the market is dead,” a buyer in Italy said.

An Indian mill was offering 5,000 tonnes of CRC with June shipment to the region at €830 per tonne CFR, but buyers in Southern Europe said they were not looking to book big tonnages so far.

And a CRC offer from Taiwan was heard at €850 per tonne CFR for May-June shipment.

Published by: Julia Bolotova