Weak demand from key end-user sectors, especially the automotive and construction industries, resulted in quiet trading in the European CRC and HDG markets this past week.
“The markets for CRC and HDG coil are dead because of the holiday season and weak automotive industry,” a buyer source said.
Firm offers were said to be rare, and mills were conducting business on a “case-by-case” basis.
Buyers’ estimates of tradable prices were reported at €700-710 ($767-778) per tonne ex-works for CRC, with transactions reported within that range. Some buyers estimated an even lower achievable price of €695 per tonne ex-works, but this was not widely confirmed by industry sources.
Mills have short order books, with September lead times still said to be available at some sellers.
“Automotive is taking less [steel] than expected, therefore, extra tonnages are available for the spot trades,” a buyer source said.
Fastmarkets’ price assessment for steel hot-dipped galvanized coil domestic, ex-works Southern Europe was €700-710 per tonne on Wednesday, narrowing downward from €700-720 per tonne seven days ago.
For HDG, offers from integrated suppliers in Northern Europe were heard at €740-750 per tonne ex-works, but transactions were reported at lower prices – €720-725 per tonne ex-works, and even €715 per tonne ex-works for bigger lots.
“Demand [for HDG] has been disappointing this year, and on top of that, we have too much capacity,” a supplier in Europe said
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €715-725 per tonne on Wednesday, down by €5 per tonne from €720-730 per tonne on August 7.
Sources said that European suppliers were mulling price increases of around €20-30 per tonne after the summer holidays, citing squeezed margins.
It remains to be seen whether demand will be strong enough in September to support a rebound in prices.
Imports
The market for imported CRC and HDG coil was quiet during the assessment week with offers seen as being broadly flat.
Vietnamese suppliers of 0.5 mm HDG with Z100-120 coating were said to be aiming for $810 per tonne CFR to Southern Europe, Fastmarkets heard. Bids for such material were heard below $800 per tonne CFR.
CRC offers from Taiwan, India and South Korea were heard at €665-680 per tonne CFR to Antwerp.
