Mills were hoping for restocking, but it was only likely to happen in the second half of September and would probably be limited, sources said.
“Most buyers have sufficient stock and, in fact, are trying to reduce their inventories,” a trading source in Europe said. “My impression is that, due to low activity in the construction market and the threat of a downturn in the automotive sector, nothing spectacular will happen. Besides, high interest rates don’t stimulate investments.”
Mills in Northern Europe could still offer CRC and HDG for October delivery, which indicated weak order books.
Firm offers were rare, and mills were conducting business on a “case-by-case” basis.
Buyers’ estimates of tradable prices for CRC were reported at €690-700 ($767-778) per tonne ex-works.
Offers were reported at €700-720 per tonne ex-works in Germany and the Benelux area.
Fastmarkets’ assessment for steel cold-rolled coil domestic, exw Northern Europe was €690-700 per tonne on Wednesday, down by €5-10 per tonne from €695-710 per tonne on August 21.
European suppliers said that they usually produce less CRC and focus on HDG output instead, which has a higher added value.
“In the CRC market, imports are dominating, and we cannot match the import price [for CRC],” a mill source said.
CRC offers from Japan and South Korea were heard at €635-650 per tonne CFR to Europe.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €710-720 per tonne on Wednesday, widening downward by €5 per tonne from €715-720 per tonne on August 21.
For HDG, offers from integrated suppliers in Northern Europe were heard at €715-720 per tonne ex-works, with transactions reported at the low end of the range.
“HDG sales are going slowly, mainly because of a weak automotive sector,” a second mill source said.
Buyers’ estimations of achievable prices were lower, at €700-710 per tonne ex-works.
Offers for 0.5 mm HDG with Z140 coating from Vietnam were heard at €730 per tonne CFR to Antwerp.
Published by: Julia Bolotova
