Activity in the downstream coil market was muted June 22 as steelmakers engaged in negotiations for long-term automotive contracts.
In Northern Europe, cold-rolled coil was down Eur20/mt on the week while galvanized material fell Eur15/mt to be assessed at Eur1,000/mt ex-works Ruhr and Eur1,060/mt ex-works Ruhr, respectively.
With negotiations for H2 automotive contracts ongoing, some contracts were heard to have been settled and reportedly agreed as either stable or at a marginal rise of Eur20/mt.
Sources have mixed expectations for automotive recovery, with some OEMs heard to have resolved supply chain problems, particularly in relation to semiconductor shortages.
A producer located in the south of Italy has been actively offering galvanized material into the Northern market, and was heard at Eur940-950/mt ex-works Italy.
In the South, CRC was down Eur10/mt while HDG also down Eur25/mt to be assessed at Eur950/mt and Eur975/mt, respectively, both ex-works Italy.
Apparent demand remains poor and real consumption in the Italian market was reportedly sufficient, although not at levels to offset inflated stocks across supply chains.
South Korean import offers for CRC were reported at Eur830/mt CFR Italy by a trader source. A different trader source considered bids of Eur800/mt CFR as workable.
— Benjamin Steven, Maria Tanatar