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What is happening in the European steel market?

What is the current situation in the European steel market? In which direction will the market move? Here are the details...

What is happening in the European steel market?

Germany

Scrap prices in Germany decreased due to weak buying in October contracts. The market was adversely affected by unfavourable conditions in the local long segment. In Germany, scrap deals for E3 and E40 were concluded at EUR 320-340/t delivered, with decreases of up to EUR 15/t during the month.

The Italian and German plate markets continue to be weak in the first half of October due to slow buying activity. No positive changes are expected until the end of the month and price stability is seen as the best scenario. Expectations for November-December are slightly better.

In Germany, the offer prices for S235JR grade plate were set at EUR 780-790/t EXW for December delivery. A source commented that demand was lower than expected.

With steel demand remaining weak, European buyers painted an uncertain outlook for hot rolled coil prices on 18 October. Some European steelmakers raised their offers by €5/mt to €20/mt in the week that started on 16 October to prevent prices from falling further and due to high production costs. SteelRadar assessed weekly German hot rolled coil prices at €650/mt.

Sources told SteelRadar that European cold rolled coil markets were calm as slowing consumption and cheaper import alternatives affected the sentiment. Prices were assessed at €760/mt for the week.

Poland

Polish mills try to raise wire rod prices, activity falls short. In mid-October, Polish steel mills have been trying to increase their wire rod offers amid the general upward trend in European markets due to high production costs and rising energy prices. Polish mills' wire rod offers are standing at €638.

The price increase in the Polish rebar market stalled in mid-October as the slight improvement in buying activity seen a few weeks ago was not sustainable. As a result, rebar prices remained flat at €605.

Spain

Spanish rebar producers are trying to raise rebar prices, but it is still unclear how the market will react to the new levels as demand remains weak. Rebar prices have been largely unchanged for the last three weeks. Workable rebar prices in Spain were at EUR565/t EXW for 12 mm B500SD grade, compared to EUR560/t EXW for 12 mm B500SD grade three weeks ago.

HRC and CRC prices in Spain have remained flat this week. HRC and CRC prices were at €655 and €680, respectively, in the week to 16 October.

Italy

There was no trading activity in the Italian rebar market this week as producers temporarily halted sales to review their pricing policies. Italian producers halted rebar supplies to the domestic and export markets this week. Prices for rebar in Italy were assessed at EUR565-575/t EXW for 12 mm, B450C grade.

Italian wire rod producers are trying to implement a 20-30 EUR/t increase in all grades of wire rod prices this week due to rising energy costs. Offers for ASTM A510 (SAE1008) grade wire rod were quoted at €570/t in Italy this week.

HRC prices were flat in Italy this week. The market situation is described as rather chaotic due to the lack of clarity in trading activity and the market price. Uncertainty over the price trend and high buyer inventories minimised trading activity not only in the HRC spot market but also in the downstream segment. SteelRadar's weekly assessment of HRC prices stands at €605.

As for CRC prices, Italy's CRC remained unchanged this week from €715 last week.

Demand for Italian plate has been sluggish, which has led to a price decline. However, market participants agree that there is almost no possibility for further price reductions due to plate costs. Prices for 14-40 mm EN 10025 (S235JR) steel plate, 14-40 mm, were set at €725 again this week.

The UK

Wire mesh prices dated 18 October 2023 have been announced in the UK. On 18 October 2023, there was an increase in UK wire mesh prices. According to the announced data, wire mesh prices dated 18 October 2023 are trading at 560.00 USD.

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