Transaction prices for European stainless flat steel have remained unchanged on-month. However, deal values may decline as mills recently reduced their offer prices for October delivery by approximately €50/tonne ($54), Kallanish notes.
After a period of robust sales and rising prices for coil, tube, and sheet, the market is now experiencing a slowdown. This can be attributed to the return of Acerinox, whose production was impacted by strikes for months. At present, there are reports of weak demand downstream.
However, after a period of tight supply in the first half of the year, the situation is now improving, as the EU’s four stainless flat steelmakers have resumed production after stoppages of varying degrees. European mills have successfully secured orders until September and are facing delays as a result of previous supply shortages in the region.
The average price for domestic stainless steel cold rolled coil is at €2,800/t delivered for September lead time but, for October, tags are down to €2,750/t delivered. Hot rolled coil is at about €150-200/t below this level on average. In Italy, due to aggressive imports, CRC is slightly lower than in the rest of Europe, at €2,750/t delivered on average, while HRC has been pushed down to €2,450/t delivered, also due to large imports.
Prices of Italian stainless cold rolled sheet are currently at elevated levels. Values for September delivery are at €2,900/t ex-works. Demand for tube remains low as supply is outpacing consumption.
According to sources, distributor prices are stagnating due to a slowdown in the downstream sector. According to a market note from Italian steel trade association Assofermet, distributors have experienced months of “struggle” to recover sales prices. The current distribution values do not seem to be sufficient to cover operating costs, especially when compared to the high quotations proposed by producers. Orders from various end-use sectors are slowing, Assofermet concluded.
Natalia Capra France
