Domestic CRC, HDG prices in Europe pressured by slow consumption

Domestic prices for steel cold-rolled coil and hot-dipped galvanized coil in Europe inched lower in the seven days to Wednesday September 20 amid slowing demand from end users and pressure from imports, industry sources told Fastmarkets.

European CRC and HDG producers avoided giving firm offers due to the weakness in the market, sticking to a “case-by-case” approach, Fastmarkets heard.

“The outlook is uncertain for October as demand from end users keeps slowing down. Steel service centers have thin order books and [are booking] less [CRC and HDG],” a mill source said.

Some mills in the region were still offering coil for October delivery, an indication of thin order books.

Slowing demand from end-user sectors was pressuring prices down, while producers were reluctant to reduce offers, citing high costs.

Buyers’ estimates of tradable values were between €730-740 ($780-791) per tonne ex-works for CRC and no higher €750-760 per tonne ex-works for HDG in Northern Europe.

One mill estimated the price for CRC at €750 per tonne EXW and around €770-780 per tonne for HDG.

Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe was €730-740 per tonne on Wednesday, down by €10 per tonne from €740-750 per tonne on September 13.

And the corresponding weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €750-770 per tonne on Wednesday, down by €10-20 from €770-780 per tonne seven days ago.

Import suppliers of CRC to Europe were trying to push offers a bit higher after a series of booking in the first half of September.

Notably, transactions for Asia-origin CRC for October-November shipment were done at €660-670 per tonne CFR Southern Europe earlier this month.

Unlike for hot-rolled coil, quota availability was not a problem for CRC, so buyers showed interest in bookings.

Current offers from South Korea, Japan and Taiwan were around €680-690 per tonne CFR. And a Vietnamese supplier was offering $830-840 per tonne CFR for 0.5mm HDG with Z100-120 coating for November shipment.

Published by: Julia Bolotova