Demand still weak in European flat steel market

Thursday, 12 September 2019 12:11:19 (GMT+3)   |   Brescia
       

According to market sources, Italian flat steel market is depressed and characterized by extremely weak demand. This situation is not only due to the expectations of domestic price decreases, but also, unfortunately, to the lack of consumption, which is caused to a large extent by the failed recovery of the automotive sector. In these circumstances, the increase of €20-30/mt that was announced by ArcelorMittal and other European producers towards the end of August "was not even considered by buyers", commented one distributor. Nevertheless, prices have not fallen significantly over the last month. The base prices of hot-rolled coils (HRC) in Italy stand at €440-445/mt, while those of cold rolled coils (CRC) and hot-galvanized coils (HDG) are between €515/mt and €535/mt, all ex-works.

On the import side, there is a certain amount of pressure. Indian HRC offers are around €430-440/mt CFR. According to SteelOrbis, a major Italian steel processor has ordered a large lot of HRC from India at a price of around €420/mt CFR. Meanwhile, offers from Turkish producers are between €425/mt €435/mt CFR, SteelOrbis understands.

Speaking again of the domestic market, sources do not exclude further downward movements given the lack of confidence in a significant recovery in orders in the fourth quarter of the year. However, "a lot will depend on the trend of raw materials prices", an operator said, adding that he does not expect any price increase for flat steel product but a sideways trend "at best". Meanwhile, in Northern Europe - where the situation in terms of consumption is not better at all - HRC prices are between €460/mt and €470/mt ex-works.

€1 = $1.1

 

 


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