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European steel market remains in summer slump

The European steel market continues to remain subdued into the third week of July, with the summer season exerting a notable drag on activity. Weak demand, pressure from competitively priced imports, and the approaching August holidays have led to a cautious stance from both producers and buyers.

European steel market remains in summer slump

HRC prices in Germany and Italy have continued their downward trend, currently trading at €535/ton and €520/ton EXW, respectively. Prices for CRC and galvanized products remain largely flat: CRC in Germany stands at €655/ton and HDG at €660/ton, while in Italy CRC has declined by €10/ton to €630/ton. Plate prices have also dropped, now at €650/ton in Germany and €595/ton in Italy. Meanwhile, prices for specialty products such as 0.5 mm galvanized coil remain stable in Italy, ranging between €760–775/ton EXW.

The rebar segment shows similar stagnation. In Italy, EXW prices range from €520–550/ton, while in Poland, CPT-based prices are reported around €580/ton. This indicates continued weakness in demand across Central Europe. European market sources note that, despite these reductions, current price levels are still considered high and not widely workable.

The ongoing market softness is driven not only by seasonal factors but also by aggressive pricing from imports, which continues to put significant pressure on domestic producers. Indonesian-origin HRC has reportedly been offered to Italy at €450/ton CFR, while Indian-origin HRC is being traded in both Italy and Northern Europe at €495–510/ton CFR. Turkish suppliers are also active in the market, offering HRC to Italy in the range of €480–500/ton CFR.

These dynamics are narrowing the pricing flexibility of European producers. In addition, the summer holiday season is contributing to a sharp slowdown in production activities and order flow. In Italy, despite the official holiday being limited to August 15th, many producers and industrial buyers have already begun their summer break, further reducing market activity.

In summary, the European steel market is experiencing more than just a typical seasonal slowdown. Demand remains particularly weak, prices are under pressure, and the market continues to lack a clear direction. Market participants are now looking ahead to September in hopes of a recovery, with cautious strategies expected to persist until then. Additionally, uncertainty surrounding a potential U.S. import tax on EU-origin steel and other products, along with the lack of clarity in the EU’s CBAM regulations, remain key factors contributing to the ongoing uncertainty in the European steel market.

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