Flat steel prices in Europe move sideways

According to market sources, prices in the local European flat steel market are still strong. Most producers in southern Europe have stopped giving offers for commercial reasons and also due to their maintenance works. Meanwhile, domestic demand in the local European flat steel market is low because buyers are purchasing only what they need. The situation is similar to last November, when buyers were expecting domestic flat steel prices to fall. According to sources, however, a decline in domestic flat steel prices is very unlikely. European flat steel producers have no intention of lowering their prices as their order books are still full, while import offers are few and uncompetitive. Meanwhile, ArcelorMittal has tried to increase its HRC prices to €600/mt ($642/mt) ex-works, while Italy-based Ilva has announced it will partially or totally stop production at its hot rolling plant in Taranto. As a result, local flat steel prices in Europe may increase further in the coming period.
 
Currently, domestic producers' base prices in Italy are at €540-570/mt ($578-610/mt) for HRC, €650-680/mt ($696-728/mt) for CRC and at €630-670/mt ($674-717/mt) for HDG coils, all ex-works. As reported previously, the prices at the lower end of the above ranges are those offered by southern European producers, while the prices at the higher ends of the ranges are offered by northern European producers.
 
€1 = $1.07