Kallanish Kallanish

Knowledge matters Knowledge matters

October, 19th 2017

Free Trial Buy Subscription
OCT 12
10:10

European coil prices are seen increasing for November

7277 Views

European cold rolled coil and hot dipped galvanized prices are expected to recover in November after a downward adjustment seen especially in Southern Europe. This was mainly due to the “… halt of apparent demand in October,” market sources suggest to Kallanish.

The price uncertainty and extremely low orders from service centres in Southern Europe are responsible for the current €20/tonne ($23.7/t) fall in the low point of the range in some CRC and HDG transactions. “I am confident that European prices will increase by €20-30/t next month after this moment of slowdown. It’s the inevitable effect of protectionism,” a sales manager tells Kallanish, referring to the plethora of trade defence measures adopted by the EU in 2017.

Meanwhile raw material and scrap prices are rising again internationally with some tube makers having bought hot rolled coils at increased prices compared to last month. “We just have to resist another week, then the market will start moving again”, a flats’ producer says.

HDG in Southern Europe is at €580/t base ex-works on average while CRC prices average around €620/t base ex-works. Northern European values are €30/t to €40/t higher, sources suggest.