The situation with steel imports in the EU

Coil imports to Europe have continued to contract in recent months, but they may now approach the bottom of the current cycle, market sources say.

HRCs from countries such as Turkey and Egypt can now be ordered at € 505-515 per tonne ($ 579-591 /t) cfr in Southern Europe, but further adjustments seem unlikely looking at the overall market situation.

One trader confirms that the situation at the Turkish factories remains critical, but says that the price level is now close to the break-even point. Another trader says the only possibility of a decline in coil prices will be a new downward trend in scrap prices, which seems unlikely given the current high demand for raw materials.

One source notes that there are rumors that the 50% duty on Turkish materials sold in the US could be cut to 25% soon. If confirmed, the market may see a recovery, otherwise negative sentiment will persist.

HRC's import offers to Southern Europe have lost about € 40 /tonne since the beginning of August, while prices for HDG and CRC have declined further. Turkey has become the main supplier of imported rolls as India has reduced available volumes and is now less competitive in price.