EU Steel Prices Slip as Import Threat Intensifies

Steel prices in the main West European markets have started to look a little weaker.But these declines are reversing only to a minor extent what has been a generally strong upward move over the course of 2006. After the reductions seen in 2005, all steel prices have showed a recovery this year. In many cases close to, or above, the peaks reached in the latter part of 2004. Looking at the EU's largest steel market, Germany, since January transaction prices for hot rolled coil have increased by 80 Euros per tonne or almost 20 percent. Cold rolled coil has taken a similar development. Most of the recent slackening in prices has been seen in southern Europe - especially Italy. Here, December transaction values for hot rolled coil have retreated by about 60 Euros per tonne from their third quarter peak, but still remain some 85 Euros per tonne higher than they were at the start of the year. France, the UK and Belgium have exhibited smaller declines. In all these countries hot and cold rolled coil prices are substantially higher than they were a year ago.