In the CRC market, offers from European producers were few, sources said.
“The gap between local and import CRC prices is over €100 ($109) per tonne; European mills cannot compete with overseas suppliers,” a buyer in Italy said.
European mills in the south were trying to “protect” the level of €800-810 per tonne delivered (€790-800 ex-works), claiming it was near the cost line for them, according to sources.
Buyers estimated tradable prices for CRC in Southern Europe at €780-790 per tonne ex-works.
As a result, Fastmarkets’ price assessment for steel cold-rolled coil domestic, ex-works Southern Europe was €790-800 per tonne on Wednesday, down by €10-20 per tonne from €800-820 per tonne on February 28.
Activity, however, was close to nil, sources said.
“The CRC market has been chronically depressed lately. Firstly, there is no demand [from end-users] and no rebound of demand in sight. Secondly, there are much cheaper import options with little [safeguard] quota risks,” a buyer in Spain said.
Sources agreed that competitive offers from overseas suppliers were also dragging European prices downward.
Offers for South Korea- and Taiwan-origin CRC with May shipment were reported at €720 per tonne CFR to Southern Europe during the assessment week. Three sources, however, reported that one Korean supplier had reduced its offers to €705 per tonne CFR in the week commencing March 4.
CRC offers from Japan and India were heard at €700-725 per tonne CFR to Southern Europe.
Fastmarkets’ weekly assessment for steel cold-rolled coil import, cfr main port Southern Europe was €705-725 per tonne on Wednesday, down by €10-15 per tonne from €720-735 per tonne seven days earlier.
HDG
Fastmarkets’ price assessment for steel hot-dipped galvanized coil domestic, ex-works Southern Europe was €810-820 per tonne on Wednesday, down by €10-20 per tonne from €820-840 per tonne seven days earlier.
Offers from suppliers in Southern Europe were reported at €820-825 per tonne ex-works during the week, while buyers’ estimations of achievable prices were heard at €800-810 per tonne ex-works.
Demand for HDG was also thin, however, the impact of cheaper imports was not as significant as that for CRC, Fastmarkets heard.
“Import HDG suppliers cannot supply the full range of grades and dimensions required by European buyers, so HDG is largely being procured in Europe,” a second buyer in Spain said.
“[A] lack of demand remains the key issue. Prices are sinking lower, but nobody’s buying because there is a perception that rock bottom has yet to be reached,” a buyer in Italy said.
“There are a lot of concerns regarding the end-user demand. Nobody wants to procure [HDG] now. On the contrary, there is destocking,” he added.
Offers from Vietnamese and Indian suppliers of 0.5mm HDG with Z100-120 coating were reported at around €800-805 per tonne CFR to Southern Europe during the assessment week.
Overseas suppliers were said to be offering May shipment.
