Prices for European CRC, HDG slide on weak demand
For cold-rolled coil, producers were avoiding giving firm offers, because they were unable to compete with much cheaper imports, several sources said.
“Energy costs remain quite high again across Europe, and annealing [the heat treatment procedure for CRC production] is very energy-intensive,” a mill source in Europe said.
“CRC is normally a product coming from Northern EU mills to Italy and [Northern EU mills] are not interested in supplying Southern EU/Italy at competitive prices,” a distributor said.
Buyers estimated tradable prices for CRC in Southern Europe at €800-820 ($860-881) per tonne ex-works.
Offers were reported around €840-850 per tonne delivered (€825-835 per tonne ex-works).
As a result, Fastmarkets’ price assessment for steel cold-rolled coil domestic, ex-works Southern Europe was €810-825 per tonne on Wednesday, down by €15-20 per tonne week on week from €830-840 per tonne.
Sources said that competitive offers from overseas suppliers were also dragging European prices downward. Transaction for South Korea- and Taiwan-origin CRC with April shipment was reported at €740-750 per tonne CFR to Southern Europe in early February.
During the assessment week, the import market was quiet due to Lunar New Year celebrations in Asia.
HDG
Competition from imports was less intense in HDG market because overseas mills were unable to supply the full range of grades and dimensions required by European buyers, Fastmarkets understands.
However, slow real demand was pushing prices down, source said.
Southern European producers were heard to have reduced offer prices to €850-860 per tonne per tonne ex-works for HDG, in comparison with the €880 per tonne ex-works reported in January.
Most suppliers could still offer April-delivery HDG, which indicated weak order books, sources suggested.
Buyer’s estimation of tradeable values for HDG was no higher than €860-870 base delivered (€845-855 per tonne ex-works)
As a result, Fastmarkets’ price assessment for steel hot-dipped galvanized coil domestic, ex-works Southern Europe was €845-855 per tonne on Wednesday, down by €15 per tonne from €860-870 per tonne seven days ago.
Overseas HDG offers to Europe were rare due to Lunar New Year celebrations in Asia.
The most recent offers from Vietnamese suppliers for 0.5mm HDG with Z100 coating were said to be aiming for $880-890 per tonne CFR to Southern
Europe. However, due to a persistent downtrend in global HRC markets, most sources expect Vietnamese suppliers to return with lower offers next week.
Summer demand slump downs Turkey’s coated steel prices
Turkey’s coated flat steel market experienced reduced activity on Monday, with prices slightly down due to sluggish demand both domestically and in export markets amid the ongoing holiday season, market participants inform Kallanish.
Availability of September-shipment coated steel from domestic mills exerted some pressure on prices. However, this situation was anticipated and therefore the impact on prices was limited.
On exports, some producers expected increased demand for Turkey-origin coated steel from Ukraine, whose buyers will use this to substitute for China-origin supply after Ukraine imposed a definitive anti-dumping duty on Chinese product effective 12 August.
Turkish domestic prices
| Product | Price, ex-works, cash | W-o-w change, $/t |
| CRC 1 mm | $760-800/t | -20/+10 |
| HDG 0.50mm Z60 | $830-855/t | 0/-15 |
| HDG 0.50mm Z100 | $830-875/t | 0/-15 |
| PPGI 0.50mm Ral 9002 5+15 | $925-980/t | 0/-10 |
| HDG 2.00mm Z60 | $760-800/t | -10-15 |
Source: Kallanish market survey
Elina Virchenko UAE
