Reduced purchasing power affects European prices for stainless steel sheet CR

Sources told Fastmarkets that prices for cold-rolled stainless steel sheet in Northern Europe declined last month amid continued low demand. Fastmarkets' monthly price estimate for cold-rolled 2 mm thick 304 stainless steel sheet produced domestically and shipped to Northern Europe decreased to €2,740–2,800 ($3,186–3,256) per tonne on Monday, September 7, down by 10-50 euros per tonne from 2750-2850 euros per tonne on Friday August 7. ,

Two sources from among the distributors reported that customer activity remained mostly low.

"At the moment, we are purchasing at a price of 2,740 to 2,755 euros per ton, and we expect this level to be representative of the region," a source from a major distributor told Fastmarkets. "As we are already approaching year-end inventory targets for distributors and service centers, we do not expect to restock until the end of the year; on the contrary, we expect inventory to decrease." Source in the manufacturer

A reported that trading remains calm, adding that "the market is very weak."

Meanwhile, European stainless steel plants announced a slight increase in their alloy surcharges in September, following a sharp decline seen in August. Monthly assessment

Fastmarkets the premium for cold-rolled 2 mm thick stainless steel sheet made of 304 alloy in the European domestic market increased to 2,178-2,235 euros per ton from 2,152-2,228 euros per ton in August 2016-2017. Market participants noted that a slight increase in commodity prices could not affect the final prices of transactions, as weak consumption continued to dominate the price dynamics. Monthly price assessment

Fastmarkets the price of cold-rolled 316 grade 2 mm thick stainless steel sheet, supplied domestically to Northern Europe, decreased to 4,150-4,300 euros per ton compared to 4,150-4,350 euros per ton as of August 7.

Logistical problems on European inland waterways were reported, in particular, low water levels on European inland waterways. Rhine – continues to be controlled by the market participants, although actual disruptions to the supply of finished products remain limited, given the overall low trading volumes.

At the same time, demand for imported materials from Asia remains limited. Buyers continue to point to trade protection measures and regulatory uncertainty – especially protective quotas and the Carbon Border Adjustment Mechanism (CBAM) - as key deterrents against placing orders abroad.

Author: Hristo Rimpopov