The European stainless flat steel market is experiencing a difficult period characterised by sluggish order intake and a downward trend in coil prices, according to stainless processors and service centres.
Several mills in Europe have reduced their prices for May delivery by approximately €20-30/tonne ($22-34), with order books remaining under pressure. A stainless steel producer is reportedly implementing a gradual weekly price reduction, with expectations for this trend to continue. The coil price increases in March did not yield the desired results, as buyers, facing market uncertainty and diminished demand, opted to reduce purchases, Kallanish notes.
Coil supply exceeds demand in Europe. According to one source, last year saw a supply and demand equilibrium, as both Acerinox and Outokumpu halted production amid social unrest.
A service centre in Italy reports its clients are engaging in minimal purchasing activity and continue to execute low-volume transactions, frequently on a back-to-back basis. Service centres are also buying limited quantities to address inventory gaps.
Multiple processors indicate first-quarter sales volumes align with those of Q1 2024; however, margins are experiencing pressure and, in some cases, are falling below cost. Efforts to raise sheet prices have encountered difficulties, with values remaining largely stable in the range of €2,550-2,620/t ex-works, contingent upon volumes and client specifications.
April and May are projected to experience a slowdown, attributed to the Easter holiday and multiple bank holidays in May, particularly in France. A service centre in northern Europe confirms the market is slow in Italy, France, and Germany, and there is no appetite for risk or speculation. The company is focusing on diversification, trying to stay away from commodity products where competition is tough and prices are under pressure.
European mills are quoting €2,450/t for stainless cold rolled coil for May delivery, inclusive of delivery costs. Hot rolled coil prices range from €130-150/t lower, based on volume.
Italian stainless flats prices remain subdued, at approximately €50/t lower than the broader European market. CRC pricing in Italy is at €2,380-2,400/t delivered. HRC in Europe stands at approximately €2,170-2,200/t delivered.
According to Italian steel trade association Assofermet’s April market note, demand for flat and long stainless steel products remains subdued in the country. Nonetheless, a potential rebalancing between supply and demand is anticipated for April. Increased focus on inventory management may limit price declines and help maintain margins.
