The European flat steel market has entered a clear state of stagnation in the second week of July, largely driven by the seasonal summer slowdown. Weakened demand, pricing pressure from imports, and the upcoming August holidays are prompting a cautious approach among both buyers and producers.
In Italy, although the official public holiday is limited to August 15, many manufacturers and industrial firms take annual leave during this period, leading to a widespread deceleration in production activities.
Downward pressure mounts on HRC prices in Italy
Domestic HRC prices in Italy are currently in the range of €525-535 per tonne EXW. However, due to extremely weak demand and the entry of aggressively priced imports into the market, prices are expected to decline by another €30 per tonne.
Last week, a Turkish producer based in Izmir reportedly sold approximately 25,000 tonnes of HRC to Italy at a highly competitive price of €485 per tonne CIF (including freight, costs, and anti-dumping duties). Other Turkish suppliers are offering at €510-515 per tonne CIF. These competitive Turkish offers are intensifying pressure on Italian domestic producers.
In the CRC segment, Italian prices stand at €655 per tonne, while hot-dip galvanized (HDG) coil is priced at around €675 per tonne. Both products are experiencing sluggish trading activity amid the seasonal slowdown.
Germany seeks price stability
The German steel market shows relative price stability, though transaction volumes remain low. Domestic HRC prices are in the €540-550 per tonne EXW range, while CRC and HDG are priced at €655-660 and €690 per tonne EXW, respectively. Plate stands at €650 per tonne, and rebar at €620 per tonne EXW.
Market participants in Germany note that demand and purchasing activity have weakened due to the holiday season. Nevertheless, prices appear to be holding steady rather than continuing to decline. Still, uncertainty prevails—some producers expect a price recovery in the autumn, while others believe the downward trend may continue, albeit at a slower pace.
Import pressure felt across Europe
Competitive import offers are restricting the maneuvering room of domestic producers across Europe. One notable example is a shipment of Indonesian HRC sold into Europe at €450 per tonne CFR, further illustrating the pressure from lower-cost imports. Turkish mills also continue to impact the market significantly with attractively priced HRC offers, particularly in Southern Europe.
While the current conditions may be seen as the typical summer slowdown in the European steel market, demand remains weak, prices are under pressure, and no clear signal has yet emerged to indicate the next market direction. With August approaching traditionally a quiet period due to widespread holidays transaction volumes are expected to fall further. Many market participants view September as a key month that could define the trajectory of a potential recovery.
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