European downstream flat-steel prices mostly unchanged despite producers pushing for increases 8

European cold-rolled coil (CRC) and hot-dip galvanized coil (HDG) prices were largely flat week on week, despite producers’ bullishness, sources told Fastmarkets on Wednesday December 7. CRC Insufficient end-user demand and still-high stock levels at buyers continued to limit buying interest for CRC in Europe.

European mills continued to push for higher prices, however, citing the increasing costs of raw materials and energy.

“We need to increase CRC and HDG prices by at least €100 ($105) per tonne to barely make a profit,” a steel producer in Northern Europe told Fastmarkets.

Buyers’ estimates of achievable prices for CRC in both Southern and Northern Europe ranged between €700 and €730 per tonne EXW. Producers were aiming higher, however, targeting €750-770 per tonne EXW.

Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Southern Europe was €700-730 per tonne on Wednesday, unchanged since the previous week.

Competitive overseas CRC offers have been putting additional pressure on CRC prices in Southern Europe, sources said.

Offers for CRC with February shipment from Southeast Asian and Indian suppliers were reported at €650-670 per tonne CFR Southern Europe. The most recent bookings were reported within this range in late November.

But most overseas suppliers withdrew from the market to reconsider offers during the current assessment week, sources said.

Fastmarkets’ weekly price assessment for steel CRC domestic, exw Northern Europe was €700-750 per tonne on Wednesday, narrowing downward by €20 per tonne from €720-750 per tonne seven days earlier.

The assessment was based on the few concluded deals, the lower end of offers, and market sources’ estimates of achievable prices.

One buyer source reported a transaction for CRC at €680 per tonne EXW during the week, but it was not widely confirmed by other market participants.

Mill sources called €750 per tonne EXW “barely the cost line,” and they said they anticipate CRC prices in the region moving closer to €800 per tonne EXW in the first quarter of 2023 on expectations of a demand rebound.

HDG
HDG offers from mills in Northern Europe were heard at €750-760 per tonne EXW during the week.

Some mills were targeting even higher prices in the range of €760-780 per tonne EXW.

Buyers, however, indicated tradeable values to be at €730-750 per tonne EXW, with most recent deals reportedly closer to the lower end of the price range, but for small volumes.

European buyers’ HDG coil stock levels have generally been falling, and they are not ruling out the possibility of small upticks in stock levels before the end of the year, market sources said.

As a result, Fastmarkets’ weekly price assessment for steel HDG domestic, exw Northern Europe was €730-750 per tonne on December 7, unchanged from the previous week.

Fastmarkets’ corresponding weekly price assessment for steel HDG domestic, exw Southern Europe was €730-750 per tonne on December 7, also flat week on week.

Published by: Julia Bolotova

Published by: Julia Bolotova