European stainless coil prices decline
The European stainless flat steel market is experiencing a difficult period characterised by sluggish order intake and a downward trend in coil prices, according to stainless processors and service centres.
Several mills in Europe have reduced their prices for May delivery by approximately €20-30/tonne ($22-34), with order books remaining under pressure. A stainless steel producer is reportedly implementing a gradual weekly price reduction, with expectations for this trend to continue. The coil price increases in March did not yield the desired results, as buyers, facing market uncertainty and diminished demand, opted to reduce purchases, Kallanish notes.
Coil supply exceeds demand in Europe. According to one source, last year saw a supply and demand equilibrium, as both Acerinox and Outokumpu halted production amid social unrest.
A service centre in Italy reports its clients are engaging in minimal purchasing activity and continue to execute low-volume transactions, frequently on a back-to-back basis. Service centres are also buying limited quantities to address inventory gaps.
Multiple processors indicate first-quarter sales volumes align with those of Q1 2024; however, margins are experiencing pressure and, in some cases, are falling below cost. Efforts to raise sheet prices have encountered difficulties, with values remaining largely stable in the range of €2,550-2,620/t ex-works, contingent upon volumes and client specifications.
April and May are projected to experience a slowdown, attributed to the Easter holiday and multiple bank holidays in May, particularly in France. A service centre in northern Europe confirms the market is slow in Italy, France, and Germany, and there is no appetite for risk or speculation. The company is focusing on diversification, trying to stay away from commodity products where competition is tough and prices are under pressure.
European mills are quoting €2,450/t for stainless cold rolled coil for May delivery, inclusive of delivery costs. Hot rolled coil prices range from €130-150/t lower, based on volume.
Italian stainless flats prices remain subdued, at approximately €50/t lower than the broader European market. CRC pricing in Italy is at €2,380-2,400/t delivered. HRC in Europe stands at approximately €2,170-2,200/t delivered.
According to Italian steel trade association Assofermet’s April market note, demand for flat and long stainless steel products remains subdued in the country. Nonetheless, a potential rebalancing between supply and demand is anticipated for April. Increased focus on inventory management may limit price declines and help maintain margins.
EU safeguard proposals disappoint steel stainless sector
The European Commission’s safeguard measure review has not met the expectations of the EU’s stainless steel mills or processors.
Sources were reacting to a European Commission document leaked on Tuesday, which was then confirmed in a WTO notification on Wednesday.
The proposed amendments to EU safeguards include new caps for carbon steel, but there appears to be no indication of additional import restrictions for stainless steel coils and long products.
A stainless steel bar manufacturer voiced their apprehension about the insufficient protective measures against lower-priced products from Asia, especially from India. Eurofer is reportedly gearing up to address the proposals. The Commission is holding a consultation period on 11-18 March.
The outlook for future European price increases for stainless bar appears uncertain. A continued material influx from other countries into Europe is likely to reduce domestic sales and maintain compressed margins in the market.
The safeguard quotas for stainless coil and other flat products remain unchanged, with the existing quotas still in effect. A prominent steel processor and a steel producer, who communicated with Kallanish shortly before the document was leaked, had expressed optimism that the announcement would catalyse an increase in flats prices.
The current concern, however, is that the increase attempts in Europe may not gain sufficient traction, leading customers to persist with purchasing lower-cost material from Asia. According to two sources, stainless sheet prices in Europe continue to be comparatively low when assessed against the cost of cold rolled coil feedstock. Sheet is at approximately €2,600/tonne ($2,840) ex-works, while European CRC at €2,500/t for May delivery indicates a constrained environment for margins and profitability.
“I believe the Commission has now expressed a firm political will on import restrictions. The EU must want to preserve the relationship with Asian countries, particularly when the rapport with the US has become tricky. Regarding stainless, the [leaked] document represents 40 pages of nothing. This will strongly impact the sector that has suffered months of unsustainable margins. This represents a significant setback for producers but also for the downstream, as it is unlikely that coils derivatives will increase,” a coil buyer comments.
Import restrictions will continue to apply to nations such as China and Taiwan; however, there has been no implementation of a cap. This quarter, multiple buyers have acquired CRC from various Asian sources, notably Korea.
The Commission has proposed that carbon steel products that have experienced severe import surges receive additional restrictions such as new quota caps and revising the administration of unused quotas. Adjustments also include reducing liberalisation rates from 1% to 0.1%, to slow tariff-rate quota (TRQ) expansion and ensure a better balance with market demand.
Natalia Capra France
Matthieu Jehl appointed president of Outokumpu’s Stainless Europe Business Line
Outokumpu Corporation has announced the appointment of Matthieu Jehl as President of its Stainless Europe business line. He will also join the Outokumpu Leadership Team, with his tenure set to begin no later than May 26, 2025.
Jehl brings extensive international experience in the steel industry, with a strong background in the European market. Prior to joining Outokumpu, he held various leadership positions at ArcelorMittal across multiple European locations and also served as President of the Energy division at John Cockerill.
Outokumpu President and CEO Kati ter Horst welcomed Jehl’s appointment, emphasizing his industry expertise and leadership skills.
“Matthieu has significant international experience and a deep understanding of the European steel market. His industry knowledge, combined with strong leadership capabilities, will be valuable to Outokumpu,” ter Horst stated.
Jehl expressed enthusiasm about his new role, highlighting Outokumpu’s position as a leader in sustainable stainless steel production.
“Leading the Stainless Europe business line is an exciting opportunity. Outokumpu’s commitment to sustainability and low-carbon stainless steel production is particularly meaningful to me. I look forward to contributing to the company at this crucial time for the European steel industry,” Jehl said.
In his new role, Jehl will report directly to ter Horst and will be based at Outokumpu’s office in Krefeld, Germany.
Source: outokumpu.com and marketsteel.com
US leads available EU stainless CRC TRQ
Significant portions of EU fourth-quarter tariff rate quota (TRQ) allocations for stainless cold-rolled sheet and strip remain available for several countries, with the exception of Taiwan and Turkey, Kallanish notes from the EU customs portal.
Taiwan completely exhausted its allocation of 46,583 tonnes on 28 October. Turkey consumed 85% of its allocation, leaving only 3,493t available out of a Q4 allocation of 22,910t.
South Korea, having the largest single-country allocation of 63,756t in Q4, has 29,845t or 47% still available. South Africa has also shown moderate usage, with 14,817t or 48% of its TRQ available.
Countries subject to safeguard measures have 70,101t or 64% of their total TRQ allocation available.
India has also underutilised its Q4 quota allocation, having 45,863t or 84% of its allocation available as of 11 December.
The US has the highest available quota, with 45,955t remaining, representing 97% of its total Q4 allocation.
| Origin | Quota 01.10.24- 31.12.24 |
Transferred | Total | Balance | Awaiting allocation |
Available | Available TRQ % |
| South Korea | 50,182 | 13,575 | 63,756 | 35,014 | 5,169 | 29,845 | 47 |
| Taiwan | 46,535 | 48 | 46,583 | – | – | – | – |
| India | 31,103 | 23,381 | 54,483 | 46,027 | 164 | 45,863 | 84 |
| South Africa | 27,064 | 3,607 | 30,672 | 14,958 | 141 | 14,817 | 48 |
| United States | 25,305 | 22,190 | 47,496 | 45,990 | 34 | 45,955 | 97 |
| Türkiye | 21,057 | 1,853 | 22,910 | 3,546 | 53 | 3,493 | 15 |
| Countries subject to safeguard measures | 66,853 | 42,373 | 109,226 | 70,488 | 387 | 70,101 | 64 |
| United Kingdom* | 32 | 22 | 54 | 49 | – | 49 | 90 |
*to Northern Ireland from other parts of the UK
Source: EU TARIC, as of 11 December. Calculated by Kallanish
Elina Virchenko UAE
Low demand pushes European stainless steel prices down
Fastmarkets’ monthly price assessment for stainless steel, cold-rolled sheet, 2mm, grade 304, transaction domestic, delivered North Europe was €2,550-2,600 ($2,694-2,747) per tonne on Friday, down from €2,600-2,650 on November 1.
“I’ve never seen the market so slow,” one trader told Fastmarkets. “Usually, December is slow because people don’t want to buy material right before the end of the year, but I certainly didn’t expect liquidity to be so low.”
A second market source said, “I wanted to sell [material], but I couldn’t find a buyer. I hope demand will pick up in January.”
A third source said that the chances of demand rising in January 2025 are “considerable, but nothing is guaranteed.”
“Traditionally, January is a very active month compared with December, but given the current state of the market, we might be surprised,” the third source said.
The alloy surcharge for grade-304 material also fell month on month.
Fastmarkets’ monthly assessment for stainless steel, cold-rolled sheet, 2mm, grade 304 alloy surcharge, domestic, Europe was €2,015-2,064 per tonne on December 6, down by €50-62 per tonne from €2,077-2,114 per tonne on November 1.
On October 4, the monthly assessment was €1,963-2,023 per tonne, down by €28-36 from €1,999-2,051 per tonne on September 6.
European stainless flats market stagnation persists
The European stainless flat steel market is currently experiencing downward pressure, as demonstrated by the decline in coil prices observed for December and January delivery.
The market is seeing persistent overcapacity coupled with sluggish demand from buyers. Projections suggest this trend of subdued activity is likely to extend into the first quarter of 2025, according to sources across both southern and northern Europe who spoke to Kallanish.
The market has not shown any significant increase in coil and sheet stock replenishment ahead of the Christmas break. Most distributors and service centres are maintaining a back-to-back buying strategy, indicating a lack of apparent demand.
A steelmaker reports the primary challenges for coils, tubes, and sheets are a sluggish order intake for January. A re-roller says shipments are at acceptable levels, although they have diminished year-on-year. However, new orders for January are facing a decline of 50% compared to last year despite the medium-low stocks in Europe.
An Italian service centre reports limited visibility on orders, indicating a slowdown in customer activity. He confirms the absence of restocking prior to the holiday. Demand for tube products remains weak but stable, whereas demand for sheet products is showing a slightly better performance compared to tube.
In northern and western Europe, stainless cold rolled coil values for January delivery are at €2,470-2,480/tonne ($2,600-2,610) delivered, reflecting a decrease from the December range of €2,500-2,550/t delivered. By comparison, stainless hot rolled coil is priced at approximately €130-140/t lower.
Italian stainless CRC is observed at €2,400-2,430/t depending on volumes. Rough edge HRC stands at €2,100/t for large-volume deliveries, while smaller orders are priced at €2,150/t delivered. Sheet prices are not sustainable at €2,600/t ex-works; however, sources suggest lower levels are heard. Sheet prices are projected to decline in January, aligning with coils, by €20-30/t.
Natalia Capra France
Marcegaglia to revamp Sheffield mill, boost output
Marcegaglia’s Stainless division in the UK is set to enhance the productivity of its Sheffield mini-mill through a strategic modernisation investment carried out by Primetals, Kallanish learns from the equipment maker.
A Marcegaglia spokesperson confirms the company will increase output when the revamp is completed, going from the current 300,000 tonnes to 500,000-550,000 t/year.
Marcegaglia has ordered a latest generation electric arc furnace to replace the existing unit, along with a de-dusting system, the representative confirms. The revamp will include an extensive automation upgrade, which Primetals will execute in three phases for immediate, medium-term, and long-term modernisation.
The equipment maker conducted a Through-Process Optimization (TPO) study, a detailed analysis of Sheffield’s steelmaking process, identifying bottlenecks and improvement measures.
The supply includes the optimisation of several systems, including a scrap yard supervisor producing cost-optimised scrap recipes, visualising process data, and recording loading. It will also receive intelligent sensors, such as a scrap basket profile, EAF Optimiser, AOD Optimiser, and LF Optimiser.
“As a first step, Primetals Technologies will install Melt Expert, a fully automated electrode control system for electric arc and ladle furnaces. Mid-term plans include the implementation of process optimisation software (Level 2) for the electric arc furnace (EAF), argon-oxygen decarburization (AOD), and ladle furnace (LF) plants, all of which are currently missing from the automation landscape. Long-term plans include the replacement of the electric arc furnace to accommodate the future productivity increase … The ultimate goal is to increase productivity, which will require introducing an additional production shift,” Primetals says in a note.
According to Marcegaglia, works will start as soon as possible in 2025 and be completed potentially by end-2026.
Natalia Capra France
Weak European stainless flats demand persists
The European stainless flat steel market remains under pressure due to persistent overcapacity and slow demand from buyers, sources from both southern and northern Europe tell Kallanish.
A northern European coil buyer however shows a measured sense of optimism about future market conditions. With Asian producers raising their coil prices and the dollar gaining strength, there is likely to be diminished interest in the import market and European buyers are expected to source coils locally in the upcoming weeks.
Sales of stainless scrap remain limited as mills’ slab and nickel pig iron procurement from Asia is limiting scrap purchase volumes. However, collection levels in Europe are low and scrap prices are trending upwards. “I believe coils will stop falling and material for January delivery may increase slightly or remain stable,” the source comments.
Another source reports a resurgence in activity last week and suggests that buyers are likely to return to the market for coil purchases for January. Flat product inventory levels across the EU are currently medium to low. At the same time, there has been a significant decline in downstream consumption.
In northern and western Europe, current stainless CRC values for November delivery are set at €2,550/tonne ($2,681) delivered, while December delivery is at €2,500/t delivered. By comparison, HRC is at approximately €130-140/t lower.
Several service centres in Europe are implementing aggressive sales strategies and are prepared to discount material to secure orders. This is particularly true in Italy, where subdued activity is maintaining low coil derivative prices, especially for tubes and sheets. Sheet prices in the country range from €2,580-2,650/t ex-works, resulting in compressed margins. Several service centres are currently experiencing financial losses.
Two sources in Italy, a re-roller and a service centre, anticipate an uptick in activity as buyers are likely to restock in the coming days, in preparation for year-end demand. Italian CRC prices are presently below the European average, influenced by low consumption levels, prevailing uncertainty, and a highly competitive market environment.
Italian stainless CRC stands at approximately €2,400-2,450/t delivered, whereas HRC is priced at €2,200-2,250/t delivered. The delivered price for HRC with rough edge is currently at below €2,200/t, sources suggest.
Natalia Capra France
Marcegaglia is set to double stainless production at its site in Fagersta, Sweden
Marcegaglia Fagersta Stainless announced a Eur100million investment to double the company’s production volumes in the coming years, the company said on Nov. 6 during its 150th anniversary.
In Sweden, Marcegaglia produces around 60,000 mt of wire rod and aims to double its total production with the bar and stainless wire rod production.
“This strategic investment will expand our product offering to include a full range of stainless steel wire rod, bar, as well as rolled billets,” the company said. “The project, set to roll out over the next few years, positions Fagersta Stainless for continued growth, efficiency and sustainability in the global stainless steel Long Products market.”
At the end of September, Antonio Marcegaglia, chairman and CEO of Italy’s Marcegaglia Group, already anticipated to S&P Global Commodity Insights that the group was considering a “significant” project to expand capacity at its Fagersta site.
Fagersta Stainless generates approximately Eur160 million in turnover and employs about 250 people. Marcegaglia acquired Fagersta in 2023 as part of its purchase of the stainless steel products division of Outokumpu.
Platts, part Commodity Insights, assessed European 18-8 stainless steel scrap solids at Eur1,1170/mt on Nov. 1 on a CIF Rotterdam basis, stable on the day and up Eur10 on the week.
The 18-8 stainless steel scrap clips and solids are a commonly used reference for the grade-304 stainless steel scrap. The scrap contains a minimum of 16% chrome content and minimum of 7% nickel content.
European stainless steel prices down on low demand, production cuts
Fastmarkets’ monthly price assessment for stainless steel cold-rolled sheet, 2mm, grade 304, transaction domestic, delivered North Europe, was €2,600-2,650 ($2,824-2,879) per tonne on Friday, narrowing downward from €2,600-2,780 on October 4.
Three major European stainless steel mills confirmed to Fastmarkets that they had revised their production volumes for the fourth quarter, with another market source saying that others had made similar decisions.
“Demand is virtually gone, but the reduced output has helped to keep prices stable,” a trader source told Fastmarkets.
“The mills are trying to keep prices alive, but in the long term it doesn’t seem viable, price-wise,” a second source told Fastmarkets. “I expect [there to be] a drop in prices as early as the first week of November, and it could continue through to the end of the year.”
Another factor that played a role in mills’ decisions to reduce output was the expectation of increased imports of Taiwanese and Indonesian material, which were possible due to the EU import quota being reset for the fourth quarter.
“Even with [anti-dumping and anti-circumvention] duties, Taiwanese prices are much lower. If the price difference is too big, it still makes sense for them to sell in Europe,” a third trader told Fastmarkets.
“I think the import quota reset has played a part when talking about the reduced output, for sure,” a fourth source told Fastmarkets.
The alloy surcharge for grade-304 material rose on Friday.
Fastmarkets’ monthly assessment of the stainless steel cold-rolled sheet, 2mm, grade 304 alloy surcharge, domestic, Europe, was €2,077-2,114 per tonne on November 1, up by €91-114 per tonne from €1,963-2,023 per tonne a month earlier.
The assessment on September 6 was €1,999-2,051 per tonne, down by €109-111 per tonne from €2,110-2,160 on August 2.
Another factor that affected the price of stainless steel flat products in October was the slower fall in the price for stainless scrap. Fastmarkets’ weekly assessment of the price for stainless steel scrap 18/8 solids, import, cif main European port, averaged €1,162.50 per tonne in October.
This continued the downward trend that started in May-when the average was €1,430 per tonne.
Zdravko Cherkezov Sofia contributed to this story.