Enterprises and stockbrokers in Northern Europe fear that demand will not support a sharp rise in prices for rolled steel until the end of 2025.
Despite recent interest rate cuts in the EU and the UK and positive sentiment regarding the German government's plans to invest in infrastructure and defense, sentiment remains negative this month.
The prices of MEPs in Belgium, France, Germany and the UK did not change compared to the previous month. This is despite two price increases on the ArcelorMittal price list, which totaled 50 euros per ton.
Sales have stalled, and most factories have announced maintenance breaks for two to three weeks during the summer holidays. Some of Europe's largest steel companies are cutting production in the long term.
Lower production at domestic factories and higher supply prices may have mitigated the downturn, which saw prices in the Northern part of the EU reach their lowest levels this year. Buyers in France said prices bottomed out in mid-July and then rose moderately. They add that the delivery time of galvanized coils of certain sizes to EU plants has increased until October or November, which may help to stabilize prices for this product.
Importers' uncertainty is increasing
Uncertainty about the cost of new CBAM taxes from January 1 and the future of EU import protections are holding back the import market. All the MEPs in the EU surveyed expect these factors to become the main source of upward price pressure in the coming months.
- This market commentary was first published in the August issue of the European Steel Review by MEPS[/url]. Sign up to be among the first recipients of the monthly Review, which features steel prices, indexes, comments, and forecasts for Belgium, France, Germany, Italy, Spain, and the United Kingdom.[url= / / /gb/en/pages/contact-meps]Contact the MEPs for more information.
German importers report that suppliers in Indonesia and South Korea are starting to offer delivery terms "free on trucks" or offer to cover the as-yet-unknown cost of CBAM taxes. In addition, some European banks are currently offering CBAM insurance measures.
The tightening of protective import quotas by the UK government has led, in particular, to an increase in duties on galvanized coils. Large volumes of galvanized coil are currently in UK docks awaiting customs clearance in October.
Shipments of hot-rolled Asian-made coils to the UK cost about 50 pounds
