According to trade sources, prices for flat rolled products in Europe showed the first signs of growth in the week before Wednesday, September 3, while the market was slowly gaining momentum after the summer break.
But business was still slow compared to previous years. Traders point to rising energy prices, lack of demand from key industries, and regulatory uncertainty as the main challenges facing the market.
"September is usually a good month, but despite the fact that we see price increases, demand is insufficient to maintain these prices," said a source at the distribution company.
The source added that the EU's Carbon border regulation mechanism (CBAM) is also "causing problems" as buyers still do not know what duties will be introduced in January, which they say will affect demand.
"Sectors such as the automotive industry are still suffering," a second distributor source told Fastmarkets. "I think that by the beginning of next year, we will start to see more steel consumption."
Southern Europe
In Southern Europe, domestic CPI prices are increasing per week-Wednesday, according to market sources.
Weekly price analysis
Fastmarkets for a roll of cold-rolled, home-made, EXW conditions in southern Europe, Euro 630-650 ($735-748) per ton on Wednesday, up from €620-630 per ton last week.
Import prices for CPR also increased in the week to Wednesday, with offers from Taiwan heard around €650 per tonne CFR, up from €600-610 per tonne CFR in mid-August.
Weekly price analysis
Fastmarkets per cold-rolled roll, imports, CFR shipments to the main port of Southern Europe, EUR 610-650 per ton on Wednesday, up from €600-610 per ton in the previous period.
Domestic galvanized prices in Southern Europe also increased this week, with sources estimating a workable market of around 650-660 euros per ton CFR, compared with 630-650 euros per ton CFR at the end of July.
Therefore, Fastmarkets' weekly price estimate for hot-dipped galvanized coil steel, domestic, EXW and Southern Europe, was €650-660 per ton on Wednesday, compared with €630-650 per ton the previous week.
Meanwhile, import prices of hot-dip galvanized steel remained stable this week, with Fastmarkets' weekly price estimate for hot-dipped galvanized coil steel, imports, CFR shipments to the main port of Southern Europe, Euro 660-690 per ton.
Northern Europe
Domestic CPI in Northern Europe also showed a slight weekly increase on Wednesday.
Market participants estimated real prices for domestic CPR at around €670-685 per ton of Ex-work on Wednesday, compared with €660-680 per ton of Ex-work in mid-August.
But some proposals were also heard for about €660-670 per ton of Ex-work this week.
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