“It’s been slow coming out of the summer period,” a trader in Northern Europe told Fastmarkets.
Mills have recently been targeting higher prices, but demand has remained weak in the second half of the year so far, sources said.
Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Northern Europe was €750-790 ($834- 879) per tonne on Wednesday, down by €15 per tonne from €750-775 per tonne a month earlier.
Similarly, Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Southern Europe was €750-790 per tonne on Wednesday, widening up by €15 per tonne month on month from €750-775 per tonne.
One distributor source told Fastmarkets that infrastructure projects were “more or less OK,” in terms of activity, but said that “in general, there is a problem of oversupply” in the hollow sections market.
And there was some bearish sentiment in the market due to falling hot-rolled coil feedstock costs.
Fastmarkets’ daily calculation of its steel hot-rolled coil index domestic, exw Northern Europe was €560 per tonne on Wednesday, down by €50.50 per tonne from €610.50 per tonne a month earlier.
HRC prices have been falling recently, dragged down by weak demand.
One distributor source said that while there had not yet been any lower offers for hollow sections, the reductions in HRC costs could add some downward pressure to prices.
Published by: Holly Chant
