HRC prices in Germany decreased by EUR 20 to EUR 595 in the second week of September. CRC prices remained stable around EUR 725. However, weakening demand, especially from the automotive and construction sectors, and oversupply in the market continue to weigh on prices.
Especially in Germany, news from the automotive sector is causing concern in the market. The possibility that the German automotive giant Volkswagen may close some of its factories has caused anxiety in the steel industry. It is said that this decision, which has not yet been finalized, could further deepen the oversupply problem. A buyer stated that some concessions have been made in the contracts with automotive manufacturers, but emphasized that there is still a big difference with the prices in the spot market.
Activity in the spot market, on the other hand, remains low. Steel service centers and traders are postponing bookings due to uncertain price developments. Buyers are cautious about replenishing their stocks as the automotive and construction sectors in particular are not performing as expected. Sources in Northern Europe report that high inventory levels and cash flow pressure are creating intense competition in steel service centers.
It is a similar picture in Italy. HRC prices decreased by EUR 25 to EUR 585 in the new week. The cold rolled sheet market remained stable at EUR 740. Import prices also showed a slight decrease, but offers from abroad have not yet attracted the expected interest. HRC offers from India at USD 600 per ton CFR and Türkiye at EUR 560 per ton CFR were the talk of the Italian market, while the European Union's anti-dumping duties and safeguard measures on certain origins continue to limit imports.
In Spain, HRC prices are stable at EUR 630, while CRC prices are trading at EUR 750. Overall, however, there is no sign of a recovery in demand in European markets, which increases expectations for further price decreases in the steel sector.
The European HRC market shows no signs of recovery in the short term due to supply-demand imbalances and trade barriers. Continued uncertainties and oversupply in the sector could put further pressure on prices, especially in the second half of the year.
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