CRC and HDG steel prices in Europe continue to rise amid limited imports
Domestic prices in Europe for cold-rolled steel and hot-dip galvanized steel increased in the week to Wednesday, March 25, driven by prolonged restrictions on imports of materials and rising production costs, which affected local prices.
Despite the fact that real demand in Europe remains relatively weak, while buyers are resisting price increases, market participants note a steady upward trend in prices as factories increase supply levels across the region, Fastmarkets reports.
The escalation of the conflict between the United States and Iran has had a serious impact on import routes, limiting steel supplies to the bloc, especially from Asia.
This, combined with the introduction at the beginning of the year of the Mechanism for Regulating Carbon Dioxide Emissions at the EU Border (CBAM), had a strong impact on import volumes.
The changing geopolitical dynamics has also led to a sharp rise in energy and raw material prices, which has forced European producers to raise prices, while this has also affected freight and logistics.
According to market sources, actual consumption has shown a downward trend in recent weeks, while market uncertainty caused mainly by the situation in the Middle East has also had an impact on domestic production.
In Northern Europe, domestic CRC and HDG prices increased in the week to March 25.
Regarding domestic CRC shipments, sales were reported at 830 euros (US$959) per tonne from the factory, while market levels of approximately 800-820 euros per tonne from the factory were reported during the evaluation period.
Increased volatility in energy prices was expected to have a stronger impact on domestic CRC production, mainly due to the energy requirements of processes used by European plants, such as periodic annealing.
The weekly price estimate for Fastmarkets cold-rolled steel for domestic consumption in Northern Europe was 820-830 euros per ton on Wednesday, down from 800-830 euros per ton in the previous week.
Meanwhile, the weekly price estimate for hot-dip galvanized steel coil, domestic, exw in Northern Europe, was 820-830 euros per ton, an increase from 800-810 euros per ton in the previous week.
The new estimate is consistent with some higher estimates of real levels, which were announced in the region of 820-830 euros per ton at the manufacturing plant.
Meanwhile, in Southern Europe, prices for domestic CRC remained stable during the week through Wednesday.
The weekly price estimate for Fastmarkets cold-rolled steel for domestic consumption in Southern Europe on exw terms on Wednesday was 810-840 euros per ton, unchanged