International Steel Market Daily: The Driving Force For The Rise in European Steel Prices Is Sufficient

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European hot-rolled steel coil producers are optimistic about the expectation of rising prices, which will support the expectation of rising prices in the future. Traders will replenish their stocks in March, and the transaction price of small tonnage is expected to be 820 euros/ton EXW. Considering that the terminal demand is still The recovery has not been complete, and some buyers are skeptical about the expectation of continued price rises, mainly due to the limited increase in demand from the automotive and construction industries, which rank the top two in downstream demand in Europe.
As for cold-rolled steel coils and hot-dip galvanized sheets, due to the increase in orders from local factories, production increased slightly and prices rose. The current domestic cold coil price in Europe is 940 Euro/ton EXW (995 USD)/ton, which is an increase of 15 USD/ton compared with the previous day, and a weekly increase of about 10 USD/ton. The driving factor of the price increase is the supply reduction. It is reported that most steel mills in Europe can deliver cold coils and hot-dip galvanized coils in May-June, and some coils delivered in June have basically been sold out, which reflects that the current market orders are sufficient and manufacturers have no delivery pressure, so there is no willingness to lower prices.
In terms of imported resources, there are not many resources and high prices (also one of the factors supporting the rise in local prices). The delivery price of Vietnamese hot-dip galvanized (0.5mm) in May is US$1,050/ton CFR, and the transaction price is US$1,020/ton Tons CFR, so the above prices are higher. At the same time, the quotation of hot coil in Southeast Asia in May is 880 euros/ton CFR, which is about 40 euros/ton higher than the transaction price of Korean resources three weeks ago，