European flat steel prices stable to softer amid zero activity

The downstream prices for steel coil products across Europe have been stable or slightly weaker over the past seven days, although buying interest remained weak, sources told Fastmarkets on Wednesday June 15.
Continued weak demand from end-user sectors, notably the automotive and white goods industries, have been putting pressure on prices for both cold-rolled coil (CRC) and hot-dipped galvanized coil (HDG) across the region.

Due to lower order intake from consumers, distributors still had quite high inventories of CRC and HDG, sources said.

“There is no point in cutting the price because it wouldn’t help to revive buying activity,” a mill source in Germany told Fastmarkets.

CRC
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €1,050-1,070 ($1,095-1,116) per tonne on Wednesday, narrowing downward by €10 per tonne from €1,150-1,200 per tonne a week earlier.

Buying interest for CRC in the region was minimal, with very few transactions completed recently, sources said.

Offers from mills in the region were reported at €1,070-1,080 per tonne exw, while buyers estimated the workable level to be no higher than €1,050 per tonne exw.

“The market is still oversupplied. The level of stock is reducing very slowly,” a distributor in Germany told Fastmarkets.

The market fundamentals in Southern Europe were similar.

Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Southern Europe, was €970-1,000 per tonne on Wednesday, widening downward by €30 per tonne from €1,000 per tonne a week earlier.

CRC offers from mills in Italy were heard at €1,000 per tonne exw, but producers were ready to give discounts to secure transactions.

The real demand, however, was very poor in the region.

“The demand for downstream steel in Italy is completely dead [with] almost no sales done,” a steel service center in Italy told Fastmarkets.

HDG
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, was €1,080-1,090 per tonne on Wednesday, narrowing downward by €10 per tonne from €1,080-1,100 per tonne a week earlier.

One transaction for a limited tonnage was heard in Germany at the lower end of that range during the week, although some HDG offers were still heard at €1,090-1,100 per tonne exw from mills in the region.

Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Southern Europe, was €1,000-1,050 per tonne on Wednesday, down by €30-50 per tonne from €1,050-1,080 per tonne last week.

The assessment was based on deals, offers and buyers’ estimates of achievable prices during the week.

Published by: Julia Bolotova