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.
European stainless supply chain disruption intensifies
Stainless steel supply disruptions in Europe are expected to persist for the remainder of the second quarter before abating in the summer months.
Supply tightness can occur when end-user demand increases at a faster pace than supply. However, the present challenges are largely the result of strike action and delivery delays from several EU stainless mills. MEPS respondents continue to report no increase in end-user requirements for stainless flat rolled material.
The Spanish steelmaker, Acerinox, has been unable to produce or ship any material from its Cadiz site since February 5, due to ongoing industrial action. Several MEPS respondents suggested that some material was being shipped from its Columbus subsidiary in South Africa to fulfil outstanding end-user orders. Distributors and stockists, however, are having to wait until the strike action ends.
A number of buyers had been informed that the situation at Acerinox may be reaching a conclusion as the workers of the plant may be offered the opportunity to vote on the mediator’s proposal. However, the strike committee opposed this option, and the vote did not take place.
Despite efforts to resolve the conflict at Acerinox Europa, there are “no guarantees that it will be resolved in the short term” the company stated in an April 25 update. The steelmaker also confirmed that its Bahru Stainless site in Malaysia will cease production in the second quarter due to the current market situation.
Political strikes in Finland were suspended on April 7. Many purchasers confirmed that, although they had promptly started receiving material from Outokumpu’s Tornio site, most orders would be delayed by three to four weeks. Buyers remain concerned that if the negotiations fail, and the countrywide strikes are reinstated, their deliveries will be postponed further.
Europe’s other domestic mills are, consequently, under pressure. An increasing number of buyers are experiencing delivery delays and some report having experienced issues with the quality of delivered material.
Very little imported stainless steel is arriving at the European ports to help alleviate the effect of these domestic supply issues, due to the lack of overseas orders placed earlier this year. As a result, inventories across the region are falling and low stocks are being reported in some product lines.
Most respondents commented that activity increased this month but that this due to supply disruptions rather than a rise in end-user demand. Most buyers anticipate that the supply problems will ease in July, when much of the delayed tonnages should have been delivered and recently placed import orders have started to arrive.
Many respondents are concerned that the summer months may bring a rapid turnaround in the market, putting prices back under downward pressure.
EUROFER welcomes anti-circumvention investigations on imports of stainless CRC
The Commission initiated on 14 August two anti-circumvention investigations regarding possible circumvention via Taiwan, Turkey and Vietnam of the anti-dumping and anti-subsidy measures imposed in 2021 and 2022 against imports of stainless steel cold rolled flat products from Indonesia. EUROFER welcomes the openings and the immediate registration of the imports from those countries towards a possible retroactive application of the existing duties.
“Since the imposition of both anti-subsidy and anti-dumping measures, the direct imports of Indonesian stainless steel cold rolled flat products (SSCR) virtually disappeared”, said Axel Eggert, Director General of the European Steel Association (EUROFER). “However, the unfair practices and in particular the massive support granted to local producers by the Indonesian and Chinese governments through raw material manipulation and financing under the Belt and Road initiative are now exported from Indonesia to third countries as stainless slabs or stainless hot rolled coils that are then re-exported as finished stainless steel, including SSCR, into the EU27 market”.
A massive amount of EU imports of SSCR from the targeted third countries are in fact indirect imports from Indonesia, with Indonesian slabs or hot rolled coils undergoing only limited processing before being re-exported to the Union. These flows of indirect imports constitute a significant share of the exports of SSCR from these countries to the EU, starting to pick up over the course of the investigations in 2021 and skyrocketing after the imposition of the measures in 2022.
“Those indirect imports show clear evidence of circumvention, similar to the practices already recognized and addressed by the Commission in the previous circumvention investigation on imports of stainless hot rolled sheets and coils from Turkey. The immediate registration of the imports from Taiwan, Turkey and Vietnam is therefore crucial to ensure the effectiveness of the existing measures”, concluded Mr. Eggert.
Italian stainless coil orders pick up
Italian stainless steel coil prices are increasing after values reached rock bottom in July. European producers are hiking by approximately €100/tonne ($109) and contracted prices are seen rising accordingly in September for hot and cold rolled coil for October delivery, sources tell Kallanish.
Much of the market is now on holiday in Italy and in other European countries. Italian mills’ order intake improved in July and the first days of August. This follows a long period of quiet activity and contracting orders. Local service centres have bought some volumes for July, August and September delivery, while some deliveries are being delayed due to the August production stoppages.
At present, asking prices for October-delivery stainless CRC in Italy are at €2,300-2,350/t delivered on average, and some €150/t less for HRC. CRC with trimmed edges is transacting at about €2,200/t delivered, with HRC at about €2,000-2,050/t delivered, sources suggest.
Two Italian buyers say prices will have to increase for coils and derivatives in September but volumes will remain limited. Service centres’ clients are reported to have some work, but their activity remains low. Purchases in September should surge for October deliveries, owing to market seasonality. At present, however, distributors are reporting a low level of orders and a continuing wait-and-see attitude.
Natalia Capra France
