EU steel section prices soften amid slow market

European domestic steel sections prices softened week on week on May 3, as sources continued to report low demand.

Platts assessed European medium sections (category 1, S235 JR) down Eur5/mt on week at Eur925/mt delivered.

“Prices still seem to be under downward pressure [due to weak demand]. Because of climatic and economic conditions that are not supporting construction activities, projects are on hold,” one Benelux-based distributor source said. The source put a workable level for beams at around Eur920/mt delivered.

Another distributor source in the Benelux region put a workable level for category 1 medium sections around Eur920-Eur930/mt delivered.

“Demand is good for beams… weather is much better now. It was raining during April but it is sunny now so I think projects will restart,” he said, adding that inventory levels at end-consumers seemed low so if projects started again demand might pick up which might support prices.

Meanwhile, Platts assessed Northwest Europe Rebar flat on the week at Eur680/mt ex-works on May 3.

One distributor source in the Benelux region put a workable level for rebar in the domestic market at around Eur705/mt delivered.

“Demand is still weak,” one seller source said, and indicated a possible workable level for rebar in the domestic Northwest European market at around Eur695-Eur705/mt delivered, but noted that workable levels could have been clearer if buyers were placing any orders. “I heard that prices from Spain [for rebar] were already lower. But only a few would accept the [lower] quality material,” he said.

One European trader indicated a workable level for rebar in the domestic Northwest European market to be around Eur685-Eur695/mt delivered.

Platts is part of S&P Global Commodity Insights.

Author Rabia Arif