European steel hollow sections prices under pressure from falling feedstock costs, weak demand

The steel hollow sections market in Europe was quiet in the week to Wednesday April 19, with prices unchanged in Northern Europe and narrowing down in Southern Europe.
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Northern Europe remained unchanged at €970-1,000 ($1,063- 1,096) per tonne.

While Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Southern Europe was €970-1,000 per tonne on Wednesday, narrowing down by €20 per tonne from €970-980 per tonne on April 12.

“There have been no big changes in the market [over the past week],” a trader told Fastmarkets, adding that prices were likely to be largely stable until the end of April.

Some traders said prices were under downward pressure because of falling hot-rolled coil feedstock costs and continuing weak demand.

Prices for domestic and imported HRC in Europe fell in the week to Wednesday, with sentiment bearish despite reduced supply.

HRC imports have recently become more attractive to buyers in Europe due to the increasingly competitive prices, sources told Fastmarkets.

Fastmarkets’ daily calculation of its steel hot-rolled coil index domestic, exw Northern Europe was €842.50 per tonne on Wednesday, down by €12.50 per tonne from €855 per tonne a week earlier.

Fastmarkets’ weekly price assessment for steel hot-rolled coil import, cfr main port Northern Europe was €700-750 on Wednesday, down €20-50 per tonne from €750-770 on April 12.

Steel sections prices were also relatively flat elsewhere in Europe – at €900-915 per tonne CPT in Poland and €810 per tonne CPT in Romania, on a theoretical weight basis – although a producer source said discounts in Romania were a possibility due to the lack of demand.

Steel sections were on offer from Turkey at $930-950 per tonne FOB, according to a source in southeast Europe.

Published by: Holly Chant