Downstream flat steel prices in Europe showed early signs of growth in the week to Wednesday September 3, with the market slowly picking up pace after the summer break, according to trade sources.
But business was still slow compared with previous years, with traders pointing to rising energy prices, lack of demand from key industries and regulatory uncertainty as some of the main issues facing the market.
“September is usually a good month, but even though we see prices going up, there isn’t enough demand to sustain those prices,” a distributor source said.
The source added that the EU’s Carbon Border Adjustment Mechanism (CBAM) was also “causing trouble” because buyers still do not know which duties will be introduced in January, which they said will affect demand.
“Sectors such as the automotive industry are still suffering,” a second distributor source told Fastmarkets. “I think that, by the beginning of next year, we’ll start to see more steel consumption.”
Southern Europe
In Southern Europe, domestic CRC prices increased in the week to Wednesday, according to market sources.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Southern Europe, was €630-650 ($735-748) per tonne on Wednesday, rising from €620-630 per tonne the previous week.
Import prices for CRC also increased in the week to Wednesday, with offers from Taiwan heard around €650 per tonne CFR, compared with €600-610 per tonne CFR in mid-August.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, import, cfr main port Southern Europe, was €610-650 per tonne on Wednesday, rising from €600-610 per tonne in the previous assessment period.
Domestic HDG prices in Southern Europe also increased this week, with sources estimating the workable market around €650-660 per tonne CFR, compared with €630-650 per tonne CFR at the end of July.
Therefore, Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Southern Europe, was €650-660 per tonne on Wednesday, up from €630-650 per tonne the previous week.
Meanwhile, imported HDG prices remained stable this week, with Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, import, cfr main port Southern Europe, at €660-690 per tonne.
Northern Europe
Domestic CRC in Northern Europe also showed a slight increase in the week to Wednesday.
Market participants estimated the workable price for domestic CRC around €670-685 per tonne ex-works on Wednesday, compared with €660-680 per tonne ex-works in mid-August.
But some offers were also heard around €660-670 per tonne ex-works this week.
As a result, Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €660-685 per tonne on Wednesday, widening upward from €660-680 per tonne the previous week.
Meanwhile, imported CRC prices remained stable this week, with Fastmarkets’ assessment for steel cold-rolled coil, import, cfr main port Northern Europe, remaining at €620-630 per tonne.
Prices for both domestic and imported HDG also remained stable this week.
The weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, stayed at €670-690 per tonne on Wednesday.
And the assessment for steel hot-dipped galvanized coil, import, cfr main port Northern Europe, remained at €690-700 per tonne.
