Germany: Following ArcelorMittal's statement, domestic Steel manufacturers have increased their quotations for Cold-Rolled Coil in the European market, but transactions remained muffled. According to market players, offers for Cold-Rolled Coil in Northern Europe on August 31 settled at USD 880/MT ex-works Ruhr, up by USD 80/MT weekly. In contrast, tradable values have been heard at USD 900-950/MT ex-works Ruhr.

Buyers cite that the Cold-Rolled Coil demand outlook has been meager, primarily due to the range-bounded Steel consumption from terminal users amidst suppliers holding higher inventory levels. According to our sources, domestic players still have higher supplies of Cold-Rolled Coil, which was secured in the second quarter. Furthermore, the automotive industry demand has been insubstantial due to a material shortage, high energy costs, and lower demand for cars caused by the economic situation.

Although some Steel manufacturers noted more buyers' inquiries this week, they have not resulted in transactions. However, it remains unclear what volumes the buyers would need. Although Steelmakers have pushed offers up as they needed to cover rising energy costs, the bottom Cold-Rolled Coil prices had been close to or below production costs.

According to the traders, "Skyrocketing electricity prices are a major concern for the domestic manufacturers across the European region. However, the local authority is endeavoring to find regulations. The restocking level is ambiguous, and prices are high; cold-rolled Coil demand persists very weakly from both automotive and white goods industries."

According to ChemAnalyst, "If the European mills held prices higher and resisted lower offers from the buyers, then the market will witness the price recovery in Cold-Rolled Coil costs. However, due to the dampened demand outlook, some mills could give up and undermine the price recovery. As a ripple effect, the Cold-Rolled Coil prices will likely soar in the upcoming weeks. Market players will enter the European market after mid-September to restock inventories.