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Kallanish Kallanish

Knowledge matters Knowledge matters

October, 27th 2020

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OCT 14

European stainless coil prices increase


The European stainless steel market is going through a phase of wait-and-see attitude on the buy side due to the current price increases for flat products.

Distributors and service centres restocked in July, August and September, but they are putting off purchasing for December and January delivery as visibility remains low, market sources tell Kallanish.

Apparent demand for flat and tubular products is currently quite low and the downstream industry is reporting a -10% average fall in activity compared to the same period in 2019, sources say.

While European mills are increasing coil prices by €30/tonne ($35) in October, distributors throughout Europe are struggling to pass on increases downstream. In the fourth quarter, mills will increase their coil prices by a total of €120/t compared to Q3, including the €30/t October hike.

Cold and hot rolled coil can only be purchased in Europe at the moment as import offers are considered uncompetitive. European mills are filling their order books at a very fast pace, Kallanish is told.

Stainless HRC in Europe can be found at €1,750/t delivered on average, while CRC is at €1,880-1,900/t delivered, sources suggest.

There is significant overcapacity of stainless tube in Europe, particularly corrosion and decoration tube. Sales volumes are stable, but margins are under serious pressure. Prices have not increased this month despite several attempts by re-rollers.