HRC prices in Germany decreased by EUR 10 to EUR 615 in September. CRC prices remained stable at EUR 725. Prices in the German sheet metal market have been under pressure amid generally low demand and could be further depressed by a shortage on the supply side. According to many industry representatives, this could lead to further price decreases, especially in the absence of supply disruptions.
In Italy, the picture is similar. HRC prices started September with a decrease of EUR 5 to EUR 610. CRC prices remained stable at EUR 740. Sheet producers and distributors in Italy noted that capacity reductions could play an important role in preventing further decreases as they monitored the weakness of the market. In Italy, sluggish demand and global uncertainties continue to weigh on prices.
In Spain, HRC prices remained stable at EUR 630, while CRC prices continued to trade at EUR 750. There is no sign of any recovery in the market. Lack of demand and weak market conditions are also reported to persist in Spain.
Distributors and traders across Europe are saying that the market is still quiet, demand is not expected to pick up and uncertainties persist. Moreover, the European Commission's anti-dumping investigation is adding to the uncertainties regarding some export countries. Turkey in particular stands out as the most likely alternative to fill this gap.
Sources indicated that a price decrease of up to EUR 50 is expected towards the end of the year. However, this process is expected to depend on supply side adjustments and capacity adjustments. The prevailing view is that price recovery will be difficult unless it is supported by supply cuts.
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