European producers of cold rolled coil (CRC) and hot dip galvanized (HDG) have reduced their prices once again this week given no visible signs of demand recovery in the region. Though, according to market insiders, the bottom has been reached and the prices may increase slightly next month, given the recent production disruptions in Germany and France which may result in a tighter flat steel supply.
More specifically, in the domestic CRC market in the EU, producers are offering at €750-780/mt ex-works, down by €20-30/mt over the past two weeks, with the lower end of the range corresponding to Italian mills’ offers at €750-760/mt ex-works, while CRC offers in northern Europe have been reported at €760-780/mt ex-works.
Meanwhile, import prices for CRC in Europe have been extremely limited this week, standing at €640-680/mt CFR, depending on suppliers, down by €20-30/mt over the past two weeks. According to sources, a deal for ex-Japan CRC was reportedly signed last week at around €680/mt CFR, while new offers have been assessed at not higher than €670/mt CFR this week. At the same time, talk about a deal for ex-India CRC at around €670-675/mt CFR Antwerp has been circulating in the market, but this information has not been confirmed by the time of publication.
Local prices for HDG have been estimated at a maximum €780/mt ex-works Italy and €800/mt ex-works northern Europe, versus €790-830/mt ex-works two weeks ago. At the same time, as for HDG import, offers have been extremely rare this week. According to sources, Vietnam has been the most active, offering at €780/mt CFR Antwerp for Z100 HDG, the same as last week.
“I believe CRC and HDG prices have reached the bottom and might stabilize in the short run. There is also some hope for prices to recover, but it is too early to talk about it. Firstly, we should see real consequences from production disruptions in Germany and France,” a market insider told SteelOrbis.