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Weekly situation analysis of the European steel market!

What happened on the European steel market this week? What are the latest price changes? How will the market move? Here are the details...

Weekly situation analysis of the European steel market!

Germany

HRC prices in Germany have recently increased by 15 EUR to 650 EUR. Despite this increase, a source in Germany underlined that there is a need to increase orders for September, noting that demand is not high. CRC prices, on the other hand, remained stable at EUR 735.

Steel plate prices in Germany increased by EUR 13 to EUR 723 on a weekly basis. Sources attributed this increase to the increase in demand, especially in the automotive and construction sectors.

E40 scrap prices, on the other hand, increased by EUR 8 to EUR 378. Limitations in scrap supply and increased demand were cited as the main reasons for the price increase.

Rebar prices remained stable at EUR 635. While the growth in the automotive and construction sectors increased demand for steel products, problems in supply chains and rising logistics costs also contributed to the rise in prices.

Poland

Polish rebar prices increased by EUR 2 to EUR 620 in the week to 15 July. According to sources, the market was quiet due to the summer holidays and not many purchases were made. This indicated that demand is lower than expected in the current period. According to another distributor source, demand has improved and will continue during the summer months.

Wire rod prices in Poland showed a notable decrease during the week of 15 July. Data showed that prices decreased by EUR 25 to EUR 633/ton. This decline was attributed to the increase in global wire rod supply and limited demand. Especially with the arrival of the summer months, the market has been experiencing a quiet period and buying activity has been lower than expected.

Spain

In Spain, HRC prices held steady at EUR645, while CRC prices were recorded at EUR790. However, it was reported that factories have not yet closed their order books for September delivery, and therefore, future prices remain uncertain.

Rebar prices in Spain were stable at EUR595. According to sources, the Spanish government has recently been focusing on infrastructure investments and housing projects, which has kept rebar demand high. However, the ability to meet this increase in demand on the supply side has kept prices stable.

Italy

In Italy, HRC prices remained stable at EUR 625, while CRC prices maintained their price level at EUR 750. This indicates that the Italian market is following a stable trend similar to other Southern European countries.

During the week of 15 July, Italian rebar prices decreased by EUR 20 to EUR 610. According to sources, this decline was assessed as a result of the slowdown in the construction sector and reduced demand.

During the same period, a similar decrease was observed in wire rod prices. The new price was revised down by EUR 20 to EUR 635. Sources reported that due to the ongoing crisis in consumption, service centres will have to accept significant price increases for steel in order to maintain production and meet orders. This could lead to a loss of competitiveness in international markets, they said.

In the new week, the steel plate market, which started trading at EUR 660, a decrease of EUR 10, also followed this downward trend.

The Italian steel market continues to be negatively affected by a dropped in demand for finished products. The drop in domestic scrap prices has led to moderate changes in the prices of finished products. A similar situation prevails across Europe: low demand and competitive prices persist. The sales prices of products are generally on a downward trend, which continues to reduce profit margins.

Netherlands

In the Dutch scrap market, prices decreased during the week of 15 July. Scrap prices decreased by USD 4 to USD 368. It was reported that the decrease in Dutch scrap prices was attributed to global economic conditions, the decrease in steel production, supply factors and changes in energy costs.

UK

Steel mesh prices in the UK decreased by USD 3 to USD 575.5. It was reported that the decrease in demand in the UK construction sector was effective in the decrease in steel mesh prices.

Benelux

In the Benelux region, HMS 1/2 (80:20) scrap prices remained stable at EUR 325. The stable steel production capacities in the Benelux region also keep the demand for scrap stable. The steel mills' constant need for recyclable materials has been instrumental in keeping scrap prices stable.

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