European Cold Rolled Coil Prices are Witnessing An Upward Surge
- 22-Jul-2022 3:14 PM
- Journalist: Peter Schmidt
Germany: Prices for Cold-Rolled Coil (CRC) in the European market rose during the third week of July due to recovering demand from the downstream automotive sector. As per market players, several northwest European buyers realize that prices of Cold Rolled Coil are close to bottoming and will soon rebound. Also, northern European steel manufacturers are unwilling to bear further price curtailment. Market expectations are that distributors need to replenish inventory soon and that the automotive industry will return in the year's second half.
As per manufacturers, Cold-Rolled Coil prices increased across Europe, spurred by recovering automotive demand. In recent weeks, the excessive availability of the product in the domestic market has reduced demand from the automotive sector, allowing mills to push additional volumes into the spot market. However, coil manufacturers showcased the recovery in demand outlook, citing automotive buyers had returned to take planned volumes with a particular uptick in the Cold-Rolled Coil demand. However, increased demand has not yet manifested for Plain Galvanized Sheet, with Hot Dipped Galvanised Plate assessed down on the day across Europe.
During the second half of 2022, the Original Equipment Manufacturers (OEM) intend to catch up on the prolonged demand of the first half, and then the market could notice shortages of Cold-Rolled Coil and sheets. The OEMs have already started booking orders from the tier-1 suppliers, and service centers have confirmed a rebounding demand outlook.
According to ChemAnalyst, the European market is highly optimistic about the recovery of carmaking activity. However, looming energy shortages can shift the market dynamics in the opposite direction, halting business at OEMs and their suppliers. At the same time, buyers refrain from making further price predictions. As a ripple effect, the Cold-Rolled Coil prices are likely to soar gradually due to the increasing demand from the automotive sector.