Demand at medium levels in European flat steel market

After the price declines seen in the European flat steel market last week, demand has increased during the past week to medium levels. Market sources state that, despite the ongoing downward pressure on flat steel prices, buyers have continued to conclude new deals. Demand from European end-users has been at decent levels in the same period, while purchasing activity is expected to remain at decent levels. The difference seen between flat steel prices in northern Europe on the one hand and southern Europe on the other has been caused by the return of Taranto-based Italian steel producer Ilva to the market.
 
Over the past week, hot rolled coil (HRC) offers in the local European market have moved sideways in the range of €310-360/mt ($347-403/mt), while cold rolled coil (CRC) offers have also remained unchanged at €400-460/mt ($448-515/mt), all ex-works. Meanwhile, over the past week hot dip galvanized (HDG) coil offers in northern Europe have remained stable at €460-480/mt ($515-538/mt), while HDG offers in southern Europe have remained in the range of €400-430/mt ($448-482/mt), all ex-works.
 
Meanwhile, import HRC and CRC offers to Europe from sources such as China, India, the CIS, Turkey and Iran have also remained unchanged at €305-335/mt ($342-375/mt) CIF and €380-400/mt ($426-448/mt) CIF, respectively.
 
€1 = $1.12