Steel producers in Germany are reported to be struggling to fill their order books amid a slowdown in construction activity and fierce competition. Prices of rebar in the region dropped by EUR 10 to EUR 615 on June 3. Sources noted that this reflected the general sluggishness of the market and the strategy of large companies to use their financial reserves to lower prices. Smaller producers continue to face serious difficulties as they are unable to compete with these low prices.
Hot rolled coil (HRC) prices in Germany similarly dropped by EUR 10 to EUR 635. Cold rolled coil (CRC) prices decreased more severely by EUR 30 to EUR 725, while European distributors avoided large volume trades due to price and demand uncertainty. This decrease was more pronounced due to the lack of demand in the European market and the impact of the holiday periods. Producers stated that margins were under pressure and profits were lost due to consumers who were only interested in lower prices.
In Germany, E40 scrap prices remained stable at EUR 368. Prices are expected to remain stable for a while due to supply shortages in the scrap market and international demand. On the other hand, steel plate prices increased by EUR 5 to EUR 760, indicating a significant increase in demand for plate.
While the European steel market is experiencing demand fluctuations and price pressures, Germany's large investments in environmentally friendly steel production are expected to bring about significant changes in the sector in the long term. However, in the short term, producers will need to carefully manage their pricing strategies and production capacities to remain competitive.
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