European prices for cold-rolled and hot-dip galvanized coils dropped further in the week to Wednesday November 23, with buyers in southern Europe opting for competitive imports instead, Fastmarkets heard.
Insufficient demand from the automotive sector as well as still-high stock levels at both steel service centers and stockholders continued to limit buying interest for cold-rolled coil in Europe.
In addition, a source said that buyers believe CRC prices in Europe have yet to find a bottom and have therefore postponed purchases.
CRC offers from mills in Southern Europe were at €750-770 ($771-791) per tonne delivered during the assessment week. This nets back to €720-730 per tonne EXW, the source said.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Southern Europe was €720-730 per tonne on Wednesday, down by €30-40 per tonne from €750-770 per tonne a week before.
Apart from weak demand and overstocking, CRC prices in Southern Europe have also come under pressure from competitive overseas offers, sources said.
Offers for CRC with January-February shipment from Vietnamese and South Korean suppliers were reported at €650-670 per tonne CFR Southern Europe, with bookings reported within that range, sources said.
Southeast Asian mills, however, have reportedly withdrawn from the market since late last week and are considering price increases.
Fastmarkets’ assessment of the price for steel cold-rolled coil, import, cfr main port Southern Europe was €650-670 per tonne on November 23, widening downward by €5 per tonne from €655-670 per tonne the week before.
HDG offers from mills in Southern Europe were heard at 730-750 per tonne EXW during the week.
Market sources said that generally, some buyers feel the need to restock, but they would like to wait for the price to hit its lowest point before restocking for the first quarter of 2023.
Fastmarkets’ weekly price assessment for steel HDG, domestic, exw Southern Europe was €730-750 per tonne on November 23, down by €20 per tonne from €750-770 per tonne the previous week.
Offer for 0.5 mm HDG with zinc coating 100 g/m2 from Vietnam were heard at €775 per tonne CFR Southern Europe. Several sources reported a booking at that level during the assessment week.
Published by: Julia Bolotova