EU coil activity to rebound in March: trader

The European coil market has been slow in terms of activity and new orders in January, but March should bring a revival.

A senior European trader confirms to Kallanish coil offers from importers into Europe have started increasing in recent days, for hot rolled coil as well as hot-dip galvanized coil. This is nevertheless happening amid very subdued buying activity in Europe.

“The new Covid wave, the difficulties of the automotive sector, the upcoming Chinese holidays and the uncertainty linked to Chinese real estate figures are having an impact on the activity of the European market. Activity continues to be very slow,” the trader observes.

March is expected to bring an upturn in sentiment. “Come March the uncertainty over Chinese real estate developments will continue, but most other uncertainty factors should be resolved and the European market could increase its activity as a consequence,” the source adds.

According to Kallanish price series, HRC import prices into southern Europe bottomed during the first half of January. Since 14 January, values have recovered by €7.50/t ($8.5), pushed by higher offers from international mills.

The European Commission has meanwhile decided not to impose provisional anti-dumping duties on imports of HDG and other corrosion-resistant flat products from Russia and Turkey (see separate story).

Emanuele Norsa Italy