Weekly overview of the European steel market (May 17 - May 24)

As of May 23, the Nordic rebar ex-works price of $ 695 / ton, week on week up $ 3 / ton; hot rolled coil ex-works price of $ 695 / ton, week on week up $ 3 / ton; cold rolled coil ex-works price of $ 781 / ton, week on week up $ 2 / ton; galvanized sheet ex-works price of $ 803 / ton, week on week up $ 3 / ton.

Market: the first half of the week, the European hot rolled coil market overall more sluggish, the main reason is still the actual demand for downstream industry is weak, and in the first few weeks after a wave of purchases to replenish the current buyers mostly turned to the sidelines, some market participants expect that the next wave of replenishment may be in mid-June, but the total amount of will still be relatively limited. Some mills are currently negotiating with automotive producers for HRC supply contracts in the second half of the year, so the willingness to hold up prices is relatively strong. In the Nordic region, the first half of the week, the steel mills in June-July cargo period of the mainstream ex-factory offer of 640-670 euros / ton, there are orders for the actual ex-factory transaction price of 630-640 euros / ton. In the Italian market, in the first half of the week, there are orders for July delivery period of HRC actual ex-works price of 630-640 euros / ton.

Exports: According to the Ukrainian Steel Association statistics, in January-April 2024, Ukraine exported about 532,000 tons of plate, up 190.1% year-on-year; semi-finished steel exports in the same period amounted to 599,000 tons, up 91.4% year-on-year. Europe is currently the most important export market for Ukrainian steel.

Steel mills: Swedish Steel (SSAB) recently approved the construction of a fossil-fuel-free short-flow steel mill in Lule?, North Boten Province, Sweden, to close the existing blast furnace facilities, thus promoting green transformation. The project will cost 4.5 billion euros (about $4.8 billion) and is expected to reduce Sweden's carbon dioxide emissions by 7 percent. In addition, the ongoing renovation of SSAB's Oxelosund plant in South Mannland, on Sweden's southeast coast, is expected to reduce CO2 emissions by 3 percent.

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