Steel hollow section prices continued lower in the week to Wednesday November 16, with stock material “overflooding” the market due to low demand, sources said.
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Northern Europe was €900-950 ($933- 985) per tonne on Wednesday, widening downward by €60 per tonne from €900-1,010 per tonne a week earlier.
Cheaper material from overfilled inventories has been undercutting freshly produced hollow sections against a backdrop of weak demand and high energy costs, one trader in Germany said.
Due to limited hand-to-mouth purchases so far in the fourth quarter, distributors have been focused on destocking, with many waiting for prices to flatten out before buying, sources said.
“I don’t think much [trading activity] will happen before the holiday season,” the same trader from Germany said. “Traders may wait a few weeks, then close everything [for Christmas] and start fresh in the second week of January.”
The market participant was doubtful about the prospects for a complete recovery until after 2023 given the global energy crisis and weak demand.
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Southern Europe was €900-950 per tonne on Wednesday, widening downward by €30 per tonne week on week from €900-980 per tonne.
Safeguarding quotas have been hurting business, sources also said. Customers that typically buy from European producers are looking to import material from outside the region after finding it difficult to get preferred delivery times for European products, including hollow sections.
“In Europe you are not getting [the product] and if you are getting material from other countries you can’t pay for it because of safeguards or anti-dumping measures,” the trader said. “Europeans are killing their business themselves.”
Hollow sections imports are one of 26 steel products subject to the EU safeguarding quotas, which are set to remain in place until June 30, 2024, with quota volumes for the products increasing by 4% year on year.
Meanwhile, hot-rolled coil feedstock costs fell in the reporting week, with buyers increasingly questioning if HRC prices have reached a bottom.
Fastmarkets’ daily calculation of its steel hot-rolled coil index domestic, exw Northern Europe was €631.75 per tonne on Wednesday, down by €16.23 per tonne from €647.98 per tonne a week earlier.
Published by: Holly Chant
