European Stainless Steel HR Coil Prices Plunge Amid Subdued Market Sentiments

The prices of Stainless Steel HR Coil have been facing a significant decline in the European markets in May due to plummeting feedstock costs and weakening demand. The European stainless steel market remains mired in uncertainty and confusion, causing participants across the supply chain to postpone purchase decisions.

Firstly, the dwindling feedstock cost considerably influences Stainless Steel HR Coil prices. Ferrous scrap is one of the feedstocks whose prices are now falling as steel demand falls. The market participant attributed the huge drop to a fraction of alloy surcharges that appear to have been abandoned by several EU mills. Moreover, Nickel price volatility was also evident as a result of increased Nickel supply and decreased liquidity in the exchange market. Ferrochrome prices have also dropped from recent highs, while molybdenum prices look to be leveling out. Therefore, the Stainless Steel HR Coil market has received minimal cost assistance from the decreased feedstock prices.

Secondly, the faltering demand for Stainless Steel HR Coil kept the prices subdued for May. According to a European distributor, stainless steel factories generally shut down operations as downstream demand falls and order books become depleted. Consumption in downstream sectors such as construction and manufacturing was limited due to a slowdown in these industries, making it increasingly difficult to sell Stainless Steel HR Coil. Furthermore, the Eurozone manufacturing PMI fell short of expectations in May, continuing below 50, indicating a growing crisis in the manufacturing sector. Inflation and increasing interest rates are also having an impact on consumer demand. As a result, domestic merchants have lowered their Stainless Steel HR Coil prices to stimulate orders.

According to ChemAnalyst, Stainless Steel HR Coil prices will likely fall in European markets over the next several weeks owing to a drop in demand and stainless-steel supply. The market's expectation of lowering Stainless Steel HR Coil pricing may cause purchasers to postpone new orders even more, resulting in lower mill order books and shorter lead times.