European steel market continues to adjust in February

According to the report of the China Iron and Steel Association, the European steel market continued to adjust in February, 2020.

The benchmark price index for steel products in Europe was 87.7 points, down 0.8% from the previous week (downward convergence), up 0.2% from the previous month (from falling to rising), down 8.7% month-on-month (convergence), and down 8.1% year-on-year.

Flat material: market prices are mixed

In northern Europe, HRC (3488, 17.00, 0.49%) ex-factory price is $ 520, which is about the same as the previous price. Cold-rolled coils are US $ 610 / tonne, an increase of US $ 5 / tonne. The ex-factory price of galvanized sheet is USD 645 / ton, up USD 5 / ton.

Some analysts said that despite the recent rise in HRC prices, the increase has slowed down. The main reason is that buyers are unwilling to take risks to buy in large quantities and have long delivery times and risks.

According to a steel trader, the current European flat plate market is generally better because of the lack of competitive import quotations and the positive impact of the previous reduction in production, which has supported domestic prices. However, because buyers have sufficient inventory, they have no intention to purchase.

As of February 24, the offer of imported hot-rolled coils in the European Union was 490 US dollars / ton (cfr), which was 4 US dollars lower than before. Cold rolled coil was $ 556 / tonne (cfr), down $ 4 / tonne. Galvanized sheet coils cost US $ 600 / tonne (cfr), a decrease of US $ 5 / tonne. Plates were $ 514 / ton (cfr), down $ 4 / ton (cfr).