Trading remained weak in the European CRC and HDG markets amid bearish expectations among buyers, lack of end-user demand and cheaper imports, Fastmarkets understands.
Slow demand from key end-user sectors — namely automotive and construction — was a major concern for the market, sources said.
“We expect steel consumption by the automotive sector in 2024 to be 20-30% lower year on year,” a steel service center source in Germany said.
In the CRC market, European producers were avoiding giving firm offers, sources said.
“In the CRC market, imports are dominating,” a buyer in Italy said. “European mills can’t compete with Asian mills when the [price] gap is over €100 [per tonne]. The [domestic] CRC market is chronically depressed.”
Sources reported CRC offers around €800 ($874) per tonne delivered (equivalent to €790 per tonne ex-works) in Italy; meanwhile, CRC offers in Spain were heard at €800 per tonne ex-works.
Buyers’ estimates of tradeable prices were no higher than €780 per tonne ex-works.
As a result, Fastmarkets’ price assessment for steel cold-rolled coil domestic, ex-works Southern Europe was €780-800 per tonne on Wednesday, widening downward by €10 per tonne week on week from €790-800 per tonne.
Import offers have also declined over the past week.
Offers for South Korean and Taiwanese CRC with May shipment were reported at €700 per tonne CFR to Southern Europe.
A deal was reported for Korea-origin CRC at €700 per tonne CFR during the assessment week.
CRC offers from Japan and India were heard at €700-720 per tonne CFR to Southern Europe.
Fastmarkets’ weekly assessment for steel cold-rolled coil import, cfr main port Southern Europe was €700-710 per tonne on Wednesday, down by €5-15 per tonne week on week from €705-725 per tonne.
HDG
HDG offers from European mills were reported at €800-820 per tonne ex-works during the week, while buyers’ estimates of achievable prices were heard at €780-800 per tonne ex-works.
Demand for HDG was said to be dull, with buyers reporting a slowdown in downstream sales to end users in February-March.
Fastmarkets’ price assessment for steel hot-dipped galvanized coil domestic, ex-works Southern Europe was €800-810 per tonne on Wednesday, down by €10 per tonne week on week from €810-820 per tonne.
Despite a persistent downtrend in domestic and import prices since early February, trading has remained slow.
“Mills are hungry for orders, but at the same time [they are] not prepared to give in to extremely low prices. Besides that, demand is very weak because most buyers have sufficient stocks,” a trading source said.
“Nobody wants to book [HDG] in a declining market,” a second trader said.
Offers from Vietnamese and Indian suppliers of 0.5mm HDG with Z100-120 coating were reported around €785-795 per tonne CFR to Southern Europe during the assessment week.
Overseas suppliers were said to be offering mid-May shipment.
