While the price idea of Indian origin HDG offers for 0.58 mm 100 g/m² zinc coated material given this week to Europe has been at $600/mt FOB, market insiders say that it would be difficult to describe this price level as being acceptable to European buyers.
Since the steel service centers in Europe are still working at fifty percent production capacity on average and, additionally, although it is claimed that the destocking process has reached its conclusion, it is observed that end-user demand is still not at the desired levels. It seems that at present the local and import flat product deals in Europe are just for tonnages required to meet current needs.
The overall flat product import volume in Europe in March 2009 is expected to decrease by 25-30 percent as compared to the same period of 2008. In the local markets, buyers (flat steel consumers in the automotive, construction, metal goods, pipe and machinery industries) are seen to be resisting the price increase attempts of the European producers, distributors and steel service centers. It seems that price movements of both European production and imported materials which do not take into account developments on the end-user side are failing to gain acceptance in the European markets.