EU value-added steel sees price cuts, mixed import sentiment

Prices softened for value-added steel coils April 13, with galvanized material under new pressure given the popularity of imported HDG.

The EU value-added coils market saw price reductions on the day as mills reduced offers against resistant buyers, following recent price hikes.

In Northern Europe, CRC remained stable at Eur1450/mt ex-works Ruhr, with HDG moving down Eur20 to Eur1500/mt ex-works.

In the South, prices fell further, with both CRC and HDG assessed down Eur50 to Eur1400/mt and Eur1450/mt, respectively.

A distributor source reported tradable value for Northern HDG at Eur1500/mt or below, emphasizing that imports recently entered the market. In terms of EU safeguard quotas, the HDG allowance for China and South Korea has been exhausted, with Chinese material exhausting the quota on the first day of the quota refresh.

The source said Turkish HDG exports were a site of interest, given Turkey’s continued access to Russian steel.

“Turkish galv exports will be able to draw a large profit by value-adding HRC sources from Russia. Turkish mills can buy from Russia at sub-Eur900, with huge potential margins if they then sell that material into Europe.”

A service center source saw the same opportunity and pressure from imported material but thought priority would still be given to domestic mills.

“The euro is getting closer to one-to-one with the dollar, making imports more expensive and thus less attractive to buyers,” said the source. “Much import material cannot match European mill offerings on quality and specific grades. Higher grade, certified material is not so easy to substitute.”

The source also noted the exhaustion of HDG quotas early in the month, saying long lead-times and ongoing uncertainties with the effects of the Ukraine war could continue to discourage interest in the import market.

— Benjamin Steven