Fitch Ratings highlights in a new report that demand for steel will remain depressed across Europe in H212.
Non integrated steel producers will be particularly affected by high raw material costs and lower steel prices for the remainder of 2012.
Fitch expects continuing negative pressure on market conditions and economic growth in developed markets (notably the eurozone) to continue to depress demand for both long and flat products to end-2012.
Steel prices continued their fall in H112, and remain depressed close to the recent lows of Q411. Fitch expects the steel price to have limited upside in the rest of 2012, with steel producers unable to pass on significant price increases in continuing weak demand conditions.
There was significant margin erosion across the steel sector in H112, and Fitch expects H212 to remain challenging as global production capacity utilisation remains low, at 81.1%, according to Worldsteel. Fitch forecasts high raw material input prices, notably iron ore and coking coal, to exacerbate margin erosion in 2012. This will limit the financial flexibility of non-integrated steel companies in particular.
1. Plates
HRP
S 235 / S275JR
5-20x2000
| Country | Domestic | Import |
| Germany | -10 | -10 |
| Spain | 0 | 0 |
| Italy | 0 | -10 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
2. Hot Rolled Coils
HRC
S235JR
2-12x1000-1500
| Country | Domestic | Import |
| Germany | -5 | -5 |
| Spain | -5 | 0 |
| Italy | -10 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
3. Cold Rolled coils
CRC
DC 01
0.60 Avx1250
| Country | Domestic | Import |
| Germany | -10 | 0 |
| Spain | 0 | 0 |
| Italy | -10 | -10 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
4. Hot Dipped Galvanized
HDG
DX 51 D / Z100-120 / AS
0.55 - 0.57x AW
| Country | Domestic | Import |
| Germany | 0 | -10 |
| Spain | -10 | 0 |
| Italy | 0 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
5. Merchant bars
Merchant bars (B)
S235JR
5 to 150 mm
| Country | Domestic | Import |
| Germany | 0 | 0 |
| Spain | 0 | 0 |
| Italy | -5 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
6. IPN / UPN
IPN / UPN (B)
S235JR
50 to 400 mm
| Country | Domestic | Import |
| Germany | 0 | 0 |
| Spain | 0 | 0 |
| Italy | -5 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
7. HEA/B/M
HEA/B/M (E)
S235JR
100 to 600 mm
| Country | Domestic | Import |
| Germany | 0 | 0 |
| Spain | 0 | 0 |
| Italy | 5 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
8. De-Bars
De-Bars (E)
FE500
6 to 40 mm
| Country | Domestic | Import |
| Germany | -15 | -5 |
| Spain | -10 | -5 |
| Italy | -5 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
9. WRC Mesh
WR Mesh (E)
S235JR
5.5 to 16 mm
| Country | Domestic | Import |
| Germany | -15 | -5 |
| Spain | 0 | 0 |
| Italy | 0 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
10. WRC Drawing
WR Drawing (E)
SAE 1006/8
5.5 to 16 mm
| Country | Domestic | Import |
| Germany | -5 | 0 |
| Spain | -10 | 5 |
| Italy | 0 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
(E) - Effective
(B) - Base
CFR Antwerp
| Product | Grade | Thick mm | Change |
| HRP | S235JR | 10-60x2500 | 0 |
| HRP | S355J2+N | 10-60x2500 | 0 |
| HRC | S235JR | 2-12x1250 | 0 |
| CRC | DC 01 | 0.60 Avx1250 | -10 |
| HDG | DX 51 D/Z 180/NA-C | 0.60 Avx1250 | 0 |
Change is on July 20th as compared to 13th July 2012
In EUR per tonne
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Source - Steel Price Europe
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