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EU downstream coils market slow, poor outlook for automotive

The value-added coils market was reported as “silent” April 27, as sources reported minimal demand and poor prospects for the automotive sector.

Cold-rolled coil in North Europe was assessed down Eur10 on the day at Eur1,390/mt ex-works Ruhr. In Italy, CRC was down Eur15 at Eur1,350/mt ex-works.

Hot-dipped galvanized material was down Eur75 in the North at Eur1,425/mt ex-works Ruhr, HDG in South Europe was also down on the day, assessed at Eur1,400/mt ex-works Italy.

Sources reported demand as scarce due to an absence of automotive from the market.

“Demand for automotive is completely gone, with little chance of return in the near-term,” said one service center source. “Not only are automotive not offering new contracts due to component shortages, they are also informing customers that the contents of some agreed contracts are now unavailable. They are being asked to wait as long as 18 months or face cancellation of contracts.”

Another service-centre source confirmed the absence of demand: “The downstream coils market is dead.”

While cold-rolled material was in previously tight supply, availability was reported as strong across the market with one source saying CRC had turned from “gold to dirt.”

Cheap CRC import offers were heard from Turkey to Spain on the day at Eur1,200/mt – while these offers are yet to be seen in the Italian market, prices are regarded as competitive.

— Benjamin Steven