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European Cold Rolled Coil Prices Remain Stable Amidst Weaker Market Trends
European Cold Rolled Coil Prices Remain Stable Amidst Weaker Market Trends

European Cold Rolled Coil Prices Remain Stable Amidst Weaker Market Trends

  • 22-Jan-2024 2:26 PM
  • Journalist: Francis Stokes

In the week ending January 19th  the European cold rolled coil price showed stability in price trend as the downstream demand from the automotive and construction sector remains plunged. The production side of Cold Rolled Coil faces a tough time as Tata Steel has confirmed that it will close its Port Talbot Plant, as the Unions threaten to go on strike as the blast furnace was causing large quantity of CO2 emission in the local region affecting residents. Furthermore, the downstream automotive industries are facing an uncertain market for the time being, as Vehicle electrification would require a closer partnership between metals such as Cold Rolled Coil and Aluminium suppliers and automotive manufacturers in the European spot market.

In mid-January, Cold Rolled Coil prices remained stable despite declining demand. To achieve net-zero emissions, European car manufacturers must collaborate closely with suppliers, and governments should enact legislation supporting the electric vehicle supply chain. Regional market experts argue that a successful green transition relies on enhanced green infrastructure, especially in facilitating low-carbon Cold Rolled Coil production in Europe. They emphasize the need for government intervention to address CO2 emissions from scope 3, particularly in materials supply, urging collaboration with suppliers and the implementation of government regulations. The European market has witnessed various agreements between car manufacturers and low-carbon emission metal product producers, including steel and Cold Rolled Coil.

Additionally, Tata Steel, a significant Cold Rolled Coil producer, has announced the closure of blast furnaces at its Port Talbot steelworks, leading to a reduction of up to 2,800 jobs. The hot strip mill will continue operating during the proposed transition period, with downstream units relying on imported steel feedstock from Tata Steel plants in the Netherlands and India. Approximately 2,500 jobs will be affected in the next 18 months, with an additional 300 impacted over the following three years. A specialist study has determined that maintaining blast furnace production while constructing a new Electric Arc Furnace (EAF) is impractical due to projected operating costs, the risks of building an EAF in an operational steel melt shop, and the near end-of-life condition of key assets. This decision has had a ripple effect, impacting Cold Rolled Coil production in the European region.

According to the analysis by ChemAnalyst, the price of Cold Rolled Coil would show a similar trend for a few weeks, persisting a stable market trend, as the downstream automotive and construction industries are facing difficulty amidst pollution concerns. Meanwhile, the electrification of Tata Steel’s Cold Rolled Coil production line will keep the market stable for the time being.

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