European service centers and merchants are reporting the first signs of improved demand following recent price increases by European manufacturers. Demand for rolled materials has also improved since July, as buyers expect further price increases and want to purchase pipes and sheets at current prices.
According to the service center in Northern Europe, signs of a potential price recovery are due more to protectionist measures than to a real improvement in consumption, which remains weak and uncertain.
Sources who spoke to Kallanish indicate that the European Commission is expected to publish its recommendations on protective replacement measures by the end of September, with their implementation scheduled for January.
Market participants in Northern Europe and Italy agree that, given current and future protectionist measures, there is likely to be a further increase in coil prices in the fourth quarter. However, in September, EU producers will face the need to sell products in a market where many large buyers are refraining from supplies, having already secured imports from Asia and the Middle East in June and July at competitive prices. It is reported that Asian manufacturers have begun to supply very large volumes of rolled metal to Spain, Italy and the ports of Northern Europe.
European steel producers raised prices last month and this month, but the market remains subdued due to the summer lull. Many businesses face significant cost overruns, inefficiency, and labor problems. In addition, the introduction of new environmentally friendly steel production facilities in Europe will add even more complexity to the market.
Stegra, formerly known as H2 Green Steel, says it intends to start commercial production in about a year. Meanwhile, Hydnum Steel plans to start construction of the plant by the end of 2025. In May, Blastr Green Steel announced that it had received a zoning plan for the Joddbole Industrial Area for its environmentally friendly steel production project in Inkuma, Finland.
According to the source, these environmentally friendly steel production projects may soon add 6-8 million tons to the market. This does not take into account two new roll production projects implemented by the Metivest and Danieli joint venture in Piombino, Italy, and the new French Marcegaglia roll production plant in Foz-sur-Mer. The launch of both projects is scheduled for 2028-2029.
According to a Swiss source, the EU may delay the implementation of CBAM by one year, a delay that will be offset by the introduction of a new protective measure, but will give buyers the opportunity to continue purchasing from Asia to Europe. to the detriment of rising European prices. Service centers in several European countries
