Prices fall further in European flat steel market

Although demand in the European flat steel market has increased rapidly after the summer holidays and is now at medium levels, prices have failed to improve accordingly. European flat steel producers point out that the cheaper import flat steel offers are eroding the local price levels, while they are also forced to reduce their prices further to be able to compete with foreign flat steel offers.
 
Over the past two weeks, hot rolled coil (HRC) offers in the local European market have moved down by €20/mt ($23/mt) to the range of €290-340/mt ($328-384/mt), while cold rolled coil (CRC) offers have remained unchanged at €400-460/mt ($472-520/mt), all ex-works. Meanwhile, over the past two weeks hot dip galvanized (HDG) coil offers in northern Europe have declined by €10/mt ($11/mt) to €450-470/mt ($509-531/mt), while HDG offers in southern Europe have also decreased by $10/mt ($11/mt) to the range of €390-420/mt ($441-475/mt), all ex-works.
 
Meanwhile, import HRC offers to Europe from sources such as China, India, the CIS, Turkey and Iran have declined by €25/mt ($28/mt) on the upper end and decreased by €45/mt ($51/mt) over the past two weeks to €280-290/mt ($316-328/mt) CIF, while CRC offers from the same sources to Europe have decreased by €20/mt ($23/mt) over the same period to the range of €360-380/mt ($407-429/mt) CIF. Moreover, it has been heard that an Italian flat steel producer has concluded a HRC deal for high tonnages with an Italian buyer at €262/mt ($296/mt) ex-works.
 
€1 = $1.13