Recent price fluctuations in the European steel market have been remarkable, especially in Germany, Poland, Spain, Italy and other key countries. These fluctuations in both the finished products and scrap markets have a significant impact on market players' forecasts and strategies for the future.
Germany
German rebar prices increased by EUR 15 to EUR 635 on the back of a recovery in demand. While construction activity in the country was expected to slow down during the summer, this increase towards the end of September indicates that new demand is emerging, especially in residential construction and infrastructure projects. Germany's overall steel production capacity and strong industrial infrastructure are expected to keep rebar demand dynamic and prices are expected to continue to increase.
HRC prices in Germany decreased by EUR 20 to EUR 575 in the week to September 23. This indicates that increased steel stocks across Europe and weak demand continue to push prices down. On the other hand, CRC prices remained stable at EUR 725.
Steel plate prices, on the other hand, decreased by EUR 23 to EUR 700 in the new week, while prices for the heavier and larger-scale 14-40 steel plate increased by EUR 30 to EUR 575. The price movements of these two different segments are shaped by the demands of large-scale industrial projects in Germany.
One German buyer emphasized that steel mills are experiencing this period as a hard lesson. There is almost no chance for HRC prices to increase on the German market, as demand has completely stalled. The crisis in the automotive industry is deeply affecting Germany's steel sector and no positive change in prices is expected unless demand picks up.
Poland
In Poland, rebar prices decreased by EUR 15 to EUR 610. This decrease reflects the slowdown in major infrastructure projects across the country and economic uncertainties slowing down the construction sector. In contrast, wire rod prices increased by EUR 5 to EUR 630. The increase in wire rod prices is believed to be driven by the fact that production in Poland's small and medium-sized industries remains strong.
A North European buyer noted that steel demand is getting weaker by the day, which is putting a strain on steel producers. The collapse of the automotive sector in particular is having a negative impact on much of the region's industrial activity and prospects for the future are very pessimistic. In this context, a recovery is not expected anytime soon.
Spain
Spanish rebar prices have remained stable at EUR 600, as the country's general economic recession is thought to be limiting construction activity. However, a sharp decrease of EUR 30 in HRC prices was reflected in a decrease in prices to EUR 600. Similarly, CRC prices also decreased by EUR 30 to EUR 720. These decreases in Spain reflect the result of the imbalance between weak demand and increasing steel supply.
According to market sources, European hot rolled steel prices are expected to bottom out in October and November. Producers across Europe have already filled their orders for 2024. Therefore, the earliest a recovery effort could be seen in the first quarter of 2025 with attempts to raise prices. However, this is not a definitive solution; if demand does not recover, it seems difficult to see a sustained rise in prices.
Italy
The Italian steel market is also reported to be on a downward trend. E3 scrap prices remained stable at EUR 328, while wire rod prices decreased by EUR 15 to EUR 620. These decreases in steel production in Italy are in line with the sluggish demand across Europe. HRC prices decreased by EUR 20 to EUR 565, indicating that more stimulus and demand growth is needed for the market to recover. Likewise, a sharp decrease of EUR 37 in galvanized steel coil prices to EUR 820 is a reflection of this weak demand.
On the other hand, 14-40 steel plate prices increased by EUR 15 to EUR 675, indicating that certain segments in the construction and manufacturing sectors are still buoyant.
Trade in Italy, on the other hand, has become more sluggish. Most buyers are only dealing in small tonnages. This is reportedly because they expect prices to decrease further. While buyers are cautiously waiting for the market to bottom out, bookings are also reportedly down. A buyer in Italy noted that lack of demand and uncertainty in the automotive sector are their biggest concerns.
Netherlands
Scrap prices in the Netherlands decreased by USD 9 to USD 335 in the week. The decline reflects the reduced demand for recycled materials from steel mills.
Benelux
In the Benelux region, scrap prices increased by EUR 7 to EUR 295. The scrap increase in Benelux is attributed to the fact that industrial activity in the region remains stronger than in Europe as a whole.
The market is in a deep recession and shows no signs of recovery, one regional buyer noted. China's central bank has already announced a series of stimulus measures to put the country's economy back on a growth path. If China can reach its targeted 5% growth rate, it could have a positive impact on the global steel market. However, this process will take a long time and does not seem to offer an instant solution.
UK
In the UK steel mesh market, small fluctuations were observed. Prices started the week with a decrease of USD 2 to USD 578, while the current price was recorded as USD 579. These limited declines in the UK steel market can be attributed to the country's economic recession and post-Brexit uncertainties.
Comments
No comment yet.