European flat steel prices were stable to slightly weaker in the seven days to Wednesday, September 28, amid limited end-user demand, overstocking and competitive cold-rolled coil import offers, sources told Fastmarkets.
The subdued demand from key end-user sectors – including the automotive industry – that have high stock levels, has kept trading activity at a minimum in the cold-rolled and hot-dipped galvanized (HDG) coil markets across Europe.
European mills are trying to keep their offer prices unchanged because of rising costs, but buyers have been refusing to pay, claiming they are unable to pass on any increases to downstream customers.
Official offers for CRC in Italy were reported at €870 ($837) per tonne exw, while prices were closer to €900 per tonne exw in Northern Europe.
Buyers said an achievable price level would not exceed €850 per tonne exw, with some transactions reported at €830-850 per tonne exw in Southern Europe for November-delivery CRC during the week.
Fastmarkets’ weekly price assessment for steel CRC, domestic, exw Southern Europe, was €830-850 per tonne on Wednesday, narrowing down by €20 per tonne from €850 per tonne on September 21.
Market participants said, that some suppliers from Japan were being quite aggressive, offering CRC with early first-quarter 2023 delivery at €770 per tonne cfr Italy, while offers from Taiwan were reported at even higher levels – €800-810 per tonne cfr Italy.
Fastmarkets’ corresponding weekly price assessment for steel CRC, domestic, exw Northern Europe, was €830-850 per tonne on Wednesday, narrowing down from €850 per tonne seven days earlier.
Fastmarkets’ weekly price assessment for steel HDG, domestic, exw Southern Europe, was €870-890 per tonne on September 28, stable week-on-week
Trading activity in Italy’s HDG market has been subdued by non-existent end-user demand and high stocks at buyers, although local mills were still offering HDG for November delivery, sources said.
Some overseas HDG was on offer from India and Southeast Asia at €940-950 per tonne cfr for 0.5mm HDG, but these price levels were not considered workable by buyers.
Fastmarkets’ corresponding weekly price assessment for steel HDG, domestic, exw Northern Europe, was €870-890 per tonne on September 28, widening down by €10 per tonne from €870-900 per tonne seven days earlier.
Producers of HDG in the region were targeting €930-950 per tonne exw, while buyers were looking to pay closer to €870-890 per tonne exw, sources told Fastmarkets.
Published by: Julia Bolotova