The European stainless flat steel market is currently experiencing downward pressure, as demonstrated by the decline in coil prices observed for December and January delivery.
The market is seeing persistent overcapacity coupled with sluggish demand from buyers. Projections suggest this trend of subdued activity is likely to extend into the first quarter of 2025, according to sources across both southern and northern Europe who spoke to Kallanish.
The market has not shown any significant increase in coil and sheet stock replenishment ahead of the Christmas break. Most distributors and service centres are maintaining a back-to-back buying strategy, indicating a lack of apparent demand.
A steelmaker reports the primary challenges for coils, tubes, and sheets are a sluggish order intake for January. A re-roller says shipments are at acceptable levels, although they have diminished year-on-year. However, new orders for January are facing a decline of 50% compared to last year despite the medium-low stocks in Europe.
An Italian service centre reports limited visibility on orders, indicating a slowdown in customer activity. He confirms the absence of restocking prior to the holiday. Demand for tube products remains weak but stable, whereas demand for sheet products is showing a slightly better performance compared to tube.
In northern and western Europe, stainless cold rolled coil values for January delivery are at €2,470-2,480/tonne ($2,600-2,610) delivered, reflecting a decrease from the December range of €2,500-2,550/t delivered. By comparison, stainless hot rolled coil is priced at approximately €130-140/t lower.
Italian stainless CRC is observed at €2,400-2,430/t depending on volumes. Rough edge HRC stands at €2,100/t for large-volume deliveries, while smaller orders are priced at €2,150/t delivered. Sheet prices are not sustainable at €2,600/t ex-works; however, sources suggest lower levels are heard. Sheet prices are projected to decline in January, aligning with coils, by €20-30/t.
Natalia Capra France
