Posted on 22 Oct 2018
Prices for coil products in north-western Europe are mainly steady with some minor softening seen. In recent times most players have not expected changes prior to this week’s Euroblech fair in Hanover, which could see new impetus coming back into the market.
“Not much has changed in the first half of October. Only minimal changes can be observed in the various product types,” a Dutch manager tells Kallanish. “It is customary for consumers to look out for the Euroblech fair before deciding what to buy and, if so, under what conditions,” he notes.
He suggests that the quiet market scenario witnessed for many weeks could be “… the calm before the storm, perhaps.” Major producers are holding on firmly to higher price levels, “… but at the same time the market is not yet responding enthusiastically to this,” he says.
Most players are refraining from the prediction of any major price movement. But if Euroblech brings no news, price movement could be generated by other events. These include the recent release of a US pastor from imprisonment in Turkey, and the prospect of US president Trump reducing the 50% tariffs on Turkish steel to 25%.
This might revive Turkish transatlantic exports after some shipments have been redirected to Europe “… and caused prices to soften for cold-rolled and galvanized,” one trader says. Others doubt that this new Turkish influence matters significantly in north-western Europe, but most agree that some softening has occurred. The ex-works price from Northern EU domestic mills for hot-rolled coil is currently seen at around €560/tonne ($643/t), for cold-rolled at around €630/t, and for galvanized at €660-670/t.
