European steelmakers tried to keep their prices at the same level

Negotiations began this month for semi-annual and annual deliveries for the automotive industry. European steelmakers are keen to ensure that these contracts reflect the full growth achieved in the market since summer 2020.

However, a shortage of semiconductors is hampering automotive production. Several car manufacturers have announced production cuts for varying durations. Reduced activity in this sector may limit the growth of contract prices. It also improves the availability of places in the general market.

Nominally attractive import offers for Asian coil products are putting downward pressure on prices in southern Europe. Quota restrictions, tariffs, high transport costs and lack of storage space in ports lead to overpricing of obvious prices and limit interest for some buyers. However, large volumes of steel, in particular coils of Indian origin, are reportedly stored at the docks. They will be cleared for customs in the EU and the UK on October 1, 2021.

The introduction of an export duty in Russia caused a rapid increase in supplies to the domestic market. As a result, local prices have collapsed. Hot rolled coil from Russia is now offered at very competitive prices in Western Europe including taxes.

A vibrant construction sector, good mill order portfolios and high transportation costs all point to further price increases. Safeguards support factories' pricing efforts. Gradually, carbon and green steel surcharges are being introduced. The downward trend is expected to continue in the near term.