Keynote June 2019

CAUTIOUS BUYING PERSISTS AS MILLS ATTEMPT PRICE HIKES

Attempts, by a number of EU mills, to lift prices cautiously, concerned about their own tight
for strip mill products, were limited, during the resale margins. They lack confidence that they
past four weeks. Buyers across northern Europe will be able to pass the producers’ proposed
inform MEPS that they were able to negotiate price hikes on to their customers.
rollover values, or even small discounts, with
regional steel producers. Meanwhile, a small Nonetheless, European coil values appear to
price upturn is noted in the Italian market. have reached the bottom of the current cycle.
Elevated mill input expenditure should prevent
Steelmakers’ profit margins are being squeezed. steel prices from falling further. Moreover,
Nonetheless, the current imbalance between steelmakers are actively trying to redress the
supply and demand is restricting the mills’ ability supply/demand imbalance by cutting production.
to lift steel selling figures. Furthermore, several
regional steel producers, needing to fill their ArcelorMittal had previously announced its
order books, did not follow the recent price hike intention to reduce output from its sites in Italy,
initiative of the first tier suppliers. Spain and Poland. Subsequently, the company
issued details of additional supply restrictions
Many EU steel distributors continue to purchase in Spain and production cuts in France and

Flat Rolled Products - Negotiated Domestic Basis Prices - Germany

price/metric ton 2019

Jan Feb Mar Apr May Jun

High 555 545 545 535 515 515
Hot Rolled Coil
Low 520 510 510 500 480 480

High 650 640 640 640 620 620

Hot Rolled Plate
Low 610 600 600 600 580 580

High 640 620 620 620 610 605

Cold Rolled Coil
Low 600 580 580 580 570 565

Hot Dipped High 665 640 640 640 630 625

Galvanised Coil Low 625 600 600 600 590 585

Electro-Zinc High 675 650 650 650 640 635

Coated Coil Low 625 600 600 600 590 585

Stainless CR Coil High 735 735 835 835 855 855

Type 304 Low 635 635 735 735 755 755

Stainless CR Coil High 1120 1120 1120 1120 1120 1120

Type 430 Low 1070 1070 1070 1070 1070 1070

ISSN 1369-8583
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 2

Germany. Other EU steelmakers are, reportedly, product categories, to be tightened up, and for it to be
reducing output by bringing forward, or extending, set country by country, rather than being on a global
summer maintenance programmes at their facilities. basis. Others want the reverse of these proposals.

Another factor affecting supply is the European Although unlikely to be altered, one feature of the EC
Commission’s import quotas. The EC is currently measures that appears to be to the detriment of the
expediting a scheduled review of the safeguard majority of affected groups is the quarterly aspect of the
measures, which was originally intended to be quota system. Having three-month periods encourages
concluded by September 30, 2019. Various groups buyers to rush to purchase material, which can then
are lobbying for their own proposed amendments, languish at the ports waiting for the opening of the new
with the current measures, seemingly, satisfying the quota allowance. This disrupts the traditional steady
requirements of few steel supply chain participants. flow of material into the market, which is an important
Some parties wish for the quota allowances, for certain feature of the supply chain.

Flat Products

Hot Rolled Coil producers are expected to limit the size of the decreases
as selling values in the spot market are bottoming out.
Prices stabilised, in Germany, this month. Steelmakers In Italy, prices increased, modestly, in June. Buyers
are attempting to implement increased selling values, report that they are able to conclude deals at figures
but buyers claim that demand does not justify the below the mills’ target levels. Material can be obtained
proposed hikes. Nonetheless, the mills’ initiative promptly from local sources. Distributors’ inventories
should prevent further price erosion, in the short are reducing. Nonetheless, they continue to highlight
term. Local delivery lead times are short and steel weak demand from their customers. Import offers are
producers are exporting to customers outside Europe quoted at €470-500 per tonne, CIF, depending on the
to try to ease pressure on the home market. Indian country of origin. These offers, combined with their
and Taiwanese suppliers are offering hot rolled coil associated extended delivery times, are considered
into Germany, but their quotations are above the unattractive.
prices that can be secured from domestic sources.
In the UK, prices softened, this month, but are believed
A marginal reduction is noted in French selling values, to be at the bottom of the current cycle. Buyers can
as not all mills followed the recent price rise initiative. obtain material on short delivery lead times. Stock
Decoilers lowered their sheet prices. As a result, levels are adequate. Downstream demand is steady.
they are struggling to pay the steelmakers’ proposed Distributors are in “wait and see” mode as they assess
advances. Buyers are confident of securing price if the market will accept the mills’ attempts to lift selling
reductions for their second half contracts, compared values. A small price reduction of €5 per tonne was
with the January/June agreements. Nonetheless, recorded in Belgium, in June. Steelmakers would like

Long Products - Negotiated Domestic Basis Prices - Germany

price/metric ton 2019

Jan Feb Mar Apr May Jun

High 600 600 620 620 610 605

Wire Rod
Low 570 570 590 590 580 575

Medium Sections High 640 640 640 640 630 620

and Beams Low 600 600 600 600 590 580

High 305 285 300 290 280 275

Reinforcing Bar
Low 285 265 280 270 260 255

High 175 165 170 165 155 150

Merchant Bar
Low 135 125 130 125 115 110

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 3

MEPS - Steel Purchasing Price Index MEPS - Steel Purchasing Price Index - Automotive
API Line Pipe X60/65 Composite Auto Body Parts Composite Index
Hot Rolled Plate Hot Rolled Coil Apr-19 May-19 Jun-19
Q1/19 Q2/19 Q1/19 Q2/19
EU Average EU Average 86.5 85.0 84.4

Non Sour 97.5 92.9 127.9 119.5

Year-on-year % +/- -9.5 -10.3 -9.7
Sour 105.8 105.8 130.6 126.7

* Q4/06 = 100 - based on euro values * Jan 07 = 100 - based on transaction prices
** p = Provisional ** STEELPPI - Steel Purchasing Price Index

to lift selling figures, but buyers suggest that demand The Belgian market is described as stable. Prices are
is not strong enough to warrant the initiative. They unchanged, month-on-month. Confidence is relatively
expect relatively stable prices, in the short term. weak, due to international economic and political
Spanish hot rolled coil selling values are unaltered, difficulties. Plate demand in Spain is soft, amidst
this month. Buyers hold mixed views regarding the a quiet trading climate. Selling values fell by €5 per
prospects for the mills achieving their proposed rises. tonne, in June. Imported material is available at the
Import offers are in line with domestic quotations, at a ports but traders are struggling to sell it. New import
minimum of €480 per tonne, CIF. Local sheet prices quotations are unattractive, but several local buyers
have fallen as re-rollers are under pressure to finalise expect foreign mills to cut their offers quite soon.
deals.
Cold Rolled Coil
Hot Rolled Plate
German prices slipped, this month. Stock levels are
In Germany, inventories are very high. Distributors high, and supply is plentiful. Import offers are more
report a slowdown in their order intake. Ex-works competitive than in recent months. In France, cold
prices are stable. Pressure from imports is minimal. rolled coil selling figures softened by €5 per tonne, in
Consumption by the machine building industry is poor. the past four weeks. Distributors continue to purchase
The performance of the wind tower sector is mixed. cautiously, concerned that they will be unable to pass
Offshore activity is healthy but the onshore segment producers’ list price hikes on to their customers. In Italy,
is weak. MEPS notes only a small number of projects the mills are attempting to lift selling values. A marginal
in the tube market. In France, mills are struggling to increase was secured, this month. Soft demand is
contend with high input costs and they are, therefore, undermining the producers’ initiatives. Activity in the
attempting to lift prices. Nonetheless, they lack home appliance market is lacklustre. Re-rollers report
orders. Delivery lead times are short. In contrast with tight margins. Steelmakers are cutting production in
last month, distributors report steady demand from an attempt to support prices. Import offers are at a
the infrastructure sector, but a slight downturn in the
yellow goods industry. Flame-cutters have reduced
Comparison of Low Market
their steel requirements for seasonal reasons. Traders
Domestic Basis Prices - Cold Rolled Coil
are keen to sell off previously purchased imported
plate that they have in stock. Local currency US dollars
price/
metric ton Last This Last This
Month Month Month Month
Supply is abundant in the Italian market. Material
Germany 570 565 641 633
can be obtained very quickly from local producers.
Prices inched down, in June. Import price offers France 560 555 630 622
exceed domestic quotations. Tentative signs of
demand improvement are noted, but service centres Italy 535 540 602 605
and end-users continue to purchase cautiously. In
the UK, distributors report severe competition for the UK 500 495 654 624
commodity grades. In contrast, demand is improving
Belgium 560 560 630 627
for the high specifications. Sales to the infrastructure
and construction sectors are fair. Domestic suppliers Spain 565 565 636 633
are offering competitive prices, with material available
for June/July arrival. Delivery from mainland European Note: Exchange rates used for conversion are based on the figures
given in our currency exchange rate table.
plate producers is quoted for late August.

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 4

Flat Rolled Products - Negotiated Domestic Basis Prices

price/metric ton Germany France Italy UK UK Belgium Spain
(€) (€) (€) (£) (€) (€) (€)

High 515 520 500 470 529 525 500

Hot Rolled Coil
Low 480 480 460 445 501 485 480

High 620 620 565 555 625 620 580

Hot Rolled Plate
Low 580 570 525 525 591 580 530

High 605 595 590 530 597 610 605

Cold Rolled Coil
Low 565 555 540 495 557 560 565

Hot Dipped High 625 605 590 545 614 635 605
Galvanised Coil Low 585 565 540 505 569 585 565

Electro-Zinc High 635 610 595 570 642 640 600

Coated Coil Low 585 580 555 530 597 590 560

Stainless CR Coil High 855 815 730 800 901 820 780
Type 304 (a) Low 755 745 680 700 788 750 730

Stainless CR Coil High 1120 1070 950 930 1047 —— 940

Type 430 (a) Low 1070 1020 900 905 1019 —— 910

Month on Month % Change

Hot Rolled Coil Low 0.0 -1.0 2.2 -1.1 -4.4 -1.0 0.0

Hot Rolled Plate Low 0.0 0.0 -0.9 -0.9 -4.2 0.0 -0.9

Cold Rolled Coil Low -0.9 -0.9 0.9 -1.0 -4.3 0.0 0.0

HD Galv Coil Low -0.8 -0.9 0.9 0.0 -3.2 0.0 0.0

EZ Coated Coil Low -0.8 -1.7 0.0 0.0 -3.2 -1.7 0.0

SS CR Coil 304 Low 0.0 0.0 -6.8 -4.1 -7.3 -2.6 -5.2

SS CR Coil 430 Low 0.0 0.0 0.0 0.0 -3.3 —— 0.0

Basis Price & Product Definitions

Negotiated basis prices pertain to new purchases for mainstream business negotiated with regional mills during the current
month for delivery in the future. They relate to prime material ex basing point net of all rebates and discounts for the lowest
quality product in the producers’ price lists. Extras for size, cutting, testing, transport etc. are excluded except where specified.

Notes: (a) Stainless Basis - 1.5mm thickness. Stainless prices refer to deals concluded in the previous month. Many deals
for stainless steel are, presently, settled using effective pricing, whereby an all-inclusive value is agreed. In these cases,
the MEPS published price tables for stainless steel are constructed by subtracting the alloy surcharges from the negotiated
effective prices, to arrive at nominal basis figures.

Prices in this table may relate to deliveries in different time periods. It is important that this table is read in conjunction with
the text in the newsletter.

The data contained in this newsletter has been obtained from respondents who we consider provide accurate intelligence on
the steel market. We make our best endeavours to be assured that the information is correct and that our analysis is reliable.
MEPS (International) Ltd cannot be made liable for any loss resulting from the use of our published data, however it may arise.

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 5

similar level to domestic quotations.

Spain Flat Products
Transaction Prices, €/m etric ton
In the UK, market demand is steady, with the
exception of sales to the automotive segment. 800
Availability is adequate. Distributors are purchasing
cautiously because they are reluctant to pay the mills’
proposed price increases. Offers from Asian suppliers 700
are competitive. Consumption is slow in the Belgian
market. Strong competition between regional mills is
noted. Nonetheless, producers maintained the prices 600
agreed in May, this month. In Spain, local selling
values stabilised, in June. Quotations from third
country suppliers are at €545-550 per tonne, CFR.
500
Despite being lower than domestic prices, buyers
suggest that they have little interest in purchasing this
material.
400
6/17 10/17 2/18 6/18 10/18 2/19 6/19
Coated Coil
HR Coil HR Plate
In Germany, the automotive industry is one of the CR Coil HD Ga lv Coil
worst performing sectors, at present. Weak demand
from that industry leads to poor confidence in the
galvanised coil market. Selling values softened, this of the downturn in that sector. Buyers report that
month. French prices slipped, this month, compared substantial quantities of non-EU material is waiting
with four weeks ago, but no further reductions at Antwerp port, but no recent arrivals have been
are envisaged. Local vehicle manufacturing is witnessed as the quota is fully utilised. In Spain,
substantially better than that experienced in many selling values are unchanged, since last month. Third
other European nations. Carmaking in Italy remains country quotations are in line with domestic figures.
depressed and a pessimistic outlook is noted for the Prospects for price rises for thin gauge material are
remainder of 2019. Steelmakers are proposing price fair because less competition exists, in that market
hikes for hot dipped galvanised coil but only marginal sector.
gains were secured, this month.
Cold Rolled Stainless Steel
In the UK, demand from the construction industry is
reasonable, considering current Brexit uncertainties. In May, nominal basis values for cold rolled austenitic
Market participants are waiting for a recovery in the stainless steel declined, in Italy, Spain, Belgium and
automotive sector. Domestic coated coil selling figures the UK. Figures were stable, in Germany and France.
were rolled over, this month, from May. Mainland Mill delivery lead times were reducing, and supply
European suppliers are tabling price increases. Offers chain inventories were above market requirements.
from Turkey are uncompetitive. Consumption by the Consequently, purchasing activity was, generally,
carmakers remains low, in Belgium. Regional mills subdued. Competitive offers were reported from Asian
have switched to non-automotive grades as a result suppliers selling into Europe.

Long Products

Wire Rod under negative pressure. In France, demand for wire

rod is reasonable from the construction sector and
In Germany, most mills conceded discounts, this month, stable for automotive applications. Supply is plentiful.
despite their ambitions to lift prices. Steelmakers are Prices for drawing and mesh quality material were cut
switching to produce greater quantities of low carbon by €10 per tonne, this month. Market participants had
grades due reduced demand for high carbon material anticipated that effective figures would, subsequently,
from the automotive sector. Consumption of wire start to increase but the outlook for scrap prices has
rod by manufacturers of industrial fasteners is poor. deteriorated. Consequently, mills may be unable to lift
Activity in the mesh quality wire rod segment is quiet. their selling values, in the short term. Italian wire rod
Buyers are cautious. Prices for finished wire mesh are prices slipped as a result of weak demand and falling

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 6

scrap costs, this month. Buyers are ordering very in July, is expected to be exhausted quickly. Despite
cautiously. Domestic traders are offering third country steady construction activity, wire rod suppliers are
material to local customers at competitive prices. keen to secure orders. As a result, they are offering
price concessions. Spanish mills are having difficulties
In the UK, demand for low carbon wire rod is subdued. filling their production schedules. Further discounts
Nevertheless, supply concerns, resulting from British were conceded, this month, for both drawing and
Steel’s collapse, are exerting upward pressure on mesh quality material. Demand is soft.
prices. Offers from EU sources are uncompetitive.
For mesh grade material, local selling values drifted Medium Sections & Beams
down, in June. Suppliers are struggling to widen the
narrow price premium that the product has over rebar. In Germany, effective figures declined by €10 per
In Belgium, buyers report a lack of quotations from tonne, this month. Mills had hoped to lift prices, but
third country sources due to the full utilisation of the they are keen to fill their order loads. Inventories are
safeguard quota. The new allowance, commencing high. Buyers are purchasing cautiously. Extended

Long Products - Negotiated Domestic Basis Prices

price/metric ton Germany France Italy UK UK Belgium Spain

(€) (€) (€) (£) (€) (€) (€)
High 605 600 535 530 597 600 550
Wire Rod (b)
Low 575 570 515 490 552 570 530

Medium Sections High 620 615 600 530 597 620 625
and Beams (c) Low 580 585 580 500 563 570 575

High 275 280 220 480 541 285 225

Rebar (d)
Low 255 250 210 450 507 255 205

High 150 135 125 495 557 125 130

Merchant Bar (e)
Low 110 115 105 475 535 105 90

Month on Month % Change

Wire Rod Low -0.9 -1.7 -1.0 2.1 -1.3 -1.7 -3.6

Medium Sections Low -1.7 -2.5 -2.5 -2.0 -5.2 -1.7 -4.2

Rebar Low -1.9 -3.8 0.0 -1.1 -4.3 -3.8 -2.4

Merchant Bar Low -4.3 -4.2 -4.5 -2.1 -5.3 -4.5 0.0

Basis Price & Product Definitions

Negotiated basis prices pertain to new purchases for mainstream business negotiated with regional mills during the current
month for delivery in the future. They relate to prime material ex basing point net of all rebates and discounts for the lowest
quality product in the producers’ price lists.

Extras for size, cutting, testing etc. are excluded except where specified. UK prices include size extra.

Notes: (b) Low carbon drawing quality.

(c) I beam, category 1. Includes size extras
(d) High yield - deformed
(e) Round bar

Prices in this table may relate to deliveries in different time periods. It is important that this table is read in conjunction with
the text in the newsletter.

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 7

maintenance stoppages could be undertaken, in

the summer, to address the imbalance between Spain Long Products
Transaction Prices, €/m etric ton
supply and demand. French transaction values have
fallen further, despite relatively good activity in the 650
construction sector. Steelmakers are attempting to
raise prices, but competition is strong, across the 600
regional beams market. The downturn in Italian
effective values continues, in June. Distributors 550
anticipate further reductions, in the short term, as a
result of declining mill scrap expenditure. Competition 500
from Spanish producers is severe. The local market
is quiet and is expected to remain so in the short
450
term.

In the UK, the collapse of British Steel has created a 400

large amount of uncertainty. This has added to existing
concerns about Brexit and the financial performance 350
of a number of large construction companies. Spanish 6/17 10/17 2/18 6/18 10/18 2/19 6/19
and German-based suppliers are very active in the Wire Rod (Drawing) M S ect (I Beam)
UK market but are not attempting to lift prices, despite Rebar Merc Bar (Round)
their squeezed profit margins. Imports from outside the
EU are not competitive. A lack of large volume orders
is noted, in the Belgian market. Selling figures fell by reductions in scrap costs exerted downward pressure
€10 per tonne, in June. Distributors have doubts that on rebar values, this month. In Italy, basis figures
mills will be able to implement price rises. However, are stable, despite reducing scrap expenditure.
they expect no significant discounting. In Spain, Steel buyers refuse to pay increased prices, but
despite previous proposals to lift transaction values, producers reject calls for discounts. Italian supply
steelmakers are now offering substantial concessions chain participants report an encouraging export
to attract business. Trading activity is subdued and market, compared with the weak demand conditions
does not support increased prices. domestically. Mills are selling steady volumes to
buyers in Germany and France.
Reinforcing Bar
In the UK, the near-term outlook amongst industry
In Germany, buyers returned to the market and participants suggests further prices reductions are
were able to negotiate small discounts, this month. expected. Despite declining scrap expenditure, mill
Steelmakers are proposing a minimum basis figure margins are squeezed. Substantial volumes of Turkish
of €270 per tonne. Demand remains favourable but material are at the ports, for immediate dispatch when
falling scrap expenditure does not support the mills’ the new quota period commences in July. Belgian
proposals. Import penetration is minimal as the rebar buyers secured discounts of around €10 per
safeguard quota is full. In France, market activity tonne, in June. Activity is slowing down ahead of the
picked up following a quiet period in April/May, when a summer holiday period. Despite renewed efforts by
number of public holidays occurred. Demand from the the producers to raise prices, Spanish basis values
construction industry is healthy. Nonetheless, recent slipped, in the past four weeks. Demand from the
construction industry is relatively good but supply of
MEPS Industrial Sector Steel
rebar is abundant. Mill maintenance work, during the
Purchasing Price Index - EU Average summer period, should tighten availability.
Jan 07 = 100 May-19 Jun-19 % change Merchant Bar
Construction Industry 88.6 86.8 -2.0

Household Appliances 75.6 74.7 -1.2 In Germany, several mills are attempting to lift basis
values, but other producers are undermining these
Machinery Sector 81.4 80.1 -1.6 efforts by offering rollover prices, or even small
Shipbuilding Industry 74.4 73.4 -1.3 discounts. Inventories are low. Buyers anticipate that
they will have to pay more during the next round of
Shipping Containers 81.4 80.2 -1.5
negotiations. In France, merchant bar prices remain
Yellow Goods 86.2 85.5 -0.8 on a downward trend, this month. Demand is soft,
and supply is plentiful. Competition from Spanish

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 8

suppliers is noted. Italian producers are undertaking in the short term. Competitive quotations are available
production cuts to address the oversupply situation. from sellers in Spain. Mainland European customers
Buyers envisage further price reductions from report that they are dissuaded from purchasing
domestic suppliers as scrap costs continue to decline. merchant bar from the UK due to uncertainties
No pickup in demand is expected before the summer surrounding Brexit. In Belgium, producers conceded
holiday period. a small discount, in June, as they are keen to attract
orders. Buyers are content to use up their stocks and
In the UK, reductions of around £10 per tonne were keep purchases to a minimum. The Spanish merchant
agreed, this month, but domestic producers have bar market is weak. Nonetheless, prices stabilised,
stated that they intend to offer no further concessions, this month, albeit at a low level.

Market & Industry Scene

Capacity/Investment is an international joint venture between Nucor and

Duferco.
NLMK DanSteel is installing a new walking beam
furnace at its plate mill in Frederiksvaerk, near Restructuring
Copenhagen. The unit is reported to be capable of
processing slabs at a rate of up to 100 tonnes per In May, long products specialist, British Steel, entered
hour, when it is recommissioned in the first half of into compulsory liquidation following a UK High
2021. Court ruling. The company is still operating whilst it
is in administration. The Official Receiver, assessing
Long product producer, Duferdofin-Nucor has interest in the acquisition of British Steel, has placed
announced that it plans to invest over €150 million on a deadline of June 30 for bids to be submitted.
a new rolling mill at its San Zeno Naviglio facility, in
Italy. The equipment is expected to have a maximum Greybull Capital, an investment fund that until recently
annual output of 600,000 tonnes, per year, when it controlled British Steel, is reported to be preparing a
enters service in summer 2022. Duferdofin-Nucor bid for the group’s French and Dutch rolling units.

Medium Term Price Forecasts

MEPS forecasts a modest upward price trend for

flat products, in the second half of 2019. Although EU Steel Price Forecast
buying activity is likely remain subdued, in the Transaction Values, €/metric ton
short term, purchasing should pick up following the 750
Forecast Range: Jul 2019 - Jun 2020
summer period. Concerns about the economic and
political situation, across Europe and internationally,
are expected to continue. Nonetheless, mill profit
650
margins are unsustainably low, as a result of rising
input expenditure. The imperative for steelmakers to
lift transaction values is becoming more acute.
550
Iron ore prices have risen substantially since the Vale
dam disaster. Spot reference values are now above
US$100 per tonne, CFR China. Coking coal costs
450
remain at an elevated level. Moreover, European mills
are battling with increased outlay associated with
CO2 emissions. In addition to the cost push factors,
steelmakers are trying to address the issue of excess 350
supply by undertaking production cuts. Furthermore, 6/17 12/17 6/18 12/18 6/19 12/19 6/20
prolonged destocking in the automotive supply chain Flat Products Long P roduc ts
is expected to come to an end.

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 9

EU Average Domestic Transaction Price Forecasts

Euro/metric ton Actual Forecast

Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

Hot Rolled Coil 497 500 505 520 530 520 520

Hot Rolled Plate 581 580 585 600 615 610 605

Cold Rolled Coil 572 570 575 595 605 595 595

HD Galv Coil 679 680 680 700 710 705 705

EZ Coated Coil 669 670 670 685 695 690 690

Wire Rod (Drawing) 550 545 545 560 560 555 555

Wire Rod (Mesh) 503 500 500 525 525 515 515

M Sect (I Beam) 577 570 570 585 595 590 590

M Sect (H Beam) 614 605 605 620 630 625 625

Reinforcing Bar 480 475 480 500 500 490 495

Merc Bar (Round) 532 530 530 545 550 545 545

Merc Bar (Eq Angle) 528 525 525 540 545 540 540

Price Definitions
Steel prices are computed from a weighted average (based on consumption) of the low transaction values identified in
Germany, France, Italy, UK and Spain, collected in national currencies and converted into euros using currency exchange
rates effective at the start of each month to provide a basis for comparison.

EU Steel Price Forecast EU Steel Price Forecast

Transaction Values, €/metric ton Transaction Values, €/metric ton

750 750
Forecast Range: Jul 2019 - Jun 2020 Forecast Range: Jul 2019 - Jun 2020

650 650

550 550

450 450

350 350
6/17 12/17 6/18 12/18 6/19 12/19 6/20 6/17 12/17 6/18 12/18 6/19 12/19 6/20

Hot Rolled Coil Hot Rolled Plate Medium Sect ions Mercha nt Bar

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 10

Transaction Price Data Sheet

Negotiated Domestic Transaction Prices
Flat Products
price/metric ton EU AVG Germany France Italy UK UK Spain
(€) (€) (€) (€) (£) (€) (€)
High 531 536 541 518 490 552 521
Hot Rolled Coil
Low 497 501 501 478 465 524 501

High 623 635 635 580 569 641 595

Hot Rolled Plate
Low 581 595 585 540 539 607 545

High 615 621 611 605 544 613 621

Cold Rolled Coil
Low 572 581 571 555 509 573 581

Hot Dipped High 722 731 711 705 658 741 711
Galvanised Coil Low 679 691 671 655 618 696 671

Electro-Zinc High 712 728 703 688 640 721 693

Coated Coil Low 669 678 673 648 600 676 653

Stainless CR Coil High 825 855 815 730 800 901 780
Type 304 Low 743 755 745 680 700 788 730

Stainless CR Coil High 1055 1120 1070 950 930 1047 940
Type 430 Low 1010 1070 1020 900 905 1019 910

Long Products
price/metric ton EU AVG Germany France Italy UK UK Spain
(€) (€) (€) (€) (£) (€) (€)
Wire Rod High 577 605 600 535 530 597 550
(Drawing Quality) Low 550 575 570 515 490 552 530

Wire Rod High 527 535 535 505 495 557 520
(Mesh Quality) Low 503 515 505 485 465 524 490

Medium Sections High 613 620 615 600 530 597 625
(I Beam) Low 577 580 585 580 500 563 575

Medium Sections High 658 675 655 650 570 642 645
(H Beam) Low 614 625 615 615 530 597 605

High 497 530 535 475 480 541 480

Reinforcing Bar
Low 480 510 505 465 450 507 460

Merchant Bar High 562 575 560 550 495 557 555
(Round) Low 532 535 540 530 475 535 515

Merchant Bar High 557 570 555 545 495 557 550
(Equal Angle) Low 528 530 535 525 475 535 510

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 11

Currency Exchange Rates Steel Purchasing Price Index - EU Average

US dollars (US$) Euros (€) January 1997 = 100
May-19 Jun-19 % change
1-May 3-Jun 1-May 3-Jun
Hot Rolled Coil 190.4 190.4 0.0
Eurozone (€) 0.889 0.893 - -
Hot Rolled Plate 203.8 202.4 -0.7
UK (£) 0.764 0.793 0.859 0.888
Cold Rolled Coil 158.5 157.1 -0.9
HD Galv Coil 148.6 147.3 -0.9
EZ Coated Coil 160.8 158.9 -1.2
Next Month’s Issue
SS CR Coil 304 62.1 60.5 -2.6
The next issue of the European Steel Review will SS CR Coil 430 90.1 89.7 -0.4
be dispatched by PDF on 18 July, 2019.
Wire Rod (Drawing) 213.2 207.5 -2.7
The next Express Price Tables will be dispatched Wire Rod (Mesh) 216.9 212.2 -2.2
by e-mail in excel format on 11 July, 2019.
M Sect (I Beam) 193.8 187.9 -3.0

Copies of our main basis price tables can be M Sect (H Beam) 180.8 175.9 -2.7
supplied by email direct to your desktop. These Reinforcing Bar 213.7 211.5 -1.0
are available within hours of completing our
research. They will reach you approximately one Merc Bar (Round) 203.0 200.0 -1.5
week before the publication dispatch date. Merc Bar (Eq Angle) 207.8 204.7 -1.5
Note: Based on low transaction values. Stainless Steel - Excluding alloy surcharge.

Negotiated Domestic Transaction Prices - Month on Month % Change

this month versus last month
EU AVG Germany France Italy UK UK Spain
(€) (€) (€) (€) (£) (€) (€)

Hot Rolled Coil Low 0.0 0.0 -1.0 2.1 -1.1 -4.2 0.0

Hot Rolled Plate Low -0.7 0.0 0.0 -0.9 -0.9 -4.1 -0.9

Cold Rolled Coil Low -0.9 -0.9 -0.9 0.9 -1.0 -4.2 0.0

HD Galv Coil Low -0.9 -0.7 -0.7 0.8 0.0 -3.2 0.0

EZ Coated Coil Low -1.2 -0.7 -1.5 0.0 0.0 -3.2 0.0

SS CR Coil 304 Low -2.6 0.0 0.0 -6.8 -4.1 -7.3 -5.2

SS CR Coil 430 Low -0.5 0.0 0.0 0.0 0.0 -3.3 0.0

Wire Rod (Drawing) Low -2.7 -3.8 -1.7 -1.0 -0.4 -3.7 -3.6

Wire Rod (Mesh) Low -2.1 -1.9 -1.9 -2.0 -1.1 -4.2 -2.0

M Sect (I Beam) Low -3.0 -1.7 -2.5 -2.5 -2.0 -5.2 -4.2

M Sect (H Beam) Low -2.7 -1.6 -2.4 -2.4 -1.9 -5.1 -3.2

Reinforcing Bar Low -1.0 -1.0 -1.9 0.0 -1.1 -4.3 -1.1

Merc Bar (Round) Low -1.5 -0.9 -0.9 -0.9 -2.1 -5.3 0.0

Merc Bar (Eq Angle) Low -1.5 -0.9 -0.9 -0.9 -2.1 -5.3 0.0

Copyright © 2019 MEPS International Ltd. All rights reserved. June

European No information contained in this report may be reproduced in any manner
Steel Review 2019
whatsoever without written permission from the publisher.
 12

Transaction Price & Product Definitions

Transaction values relate to those agreed by steelmakers and service centres for prime material in the specified steel
products. Prices are for regular business between customers and their local/regional steel mills, negotiated during the
current month for delivery in the future.

Transaction prices include extras for size and coating, where applicable, for the lowest priced grade of steel - sold ex-
works/ex-mill. Additional extras for processing, packaging, testing and inspection are excluded. Delivery charges and local
taxes are not included in the quoted prices. Contract deals arranged in the domestic market, or deals for lots of imported
steel, are specifically excluded from our price evaluation.

Hot Rolled Coil - 2-3mm thickness, width over 1.1 metres.

Hot Rolled Plate - 15-40mm thickness, width over 2.0 metres.

Cold Rolled Coil - 1mm thickness, width over 1.3 metres.

Hot Dipped Galvanised Coil - 1mm thickness, width over 1.1 metres, coating thickness 275gm/m².

Electro-Zinc Coated Coil - 1mm thickness, width over 1.1 metres, standard coating.

Stainless CR Coil Type 304 and 430 - 1.5mm thickness, width over 1.25 metres (excluding alloy surcharges).

Wire Rod (Drawing Quality) - 5.5mm diameter.

Wire Rod (Mesh Quality) - 8-12mm diameter.

Medium Sections (I Beam) - 180-240mm, category 1.

Medium Sections (H Beam) - 240 x 240mm, category 3.

Reinforcing Bar (Deformed) - 16-20mm diameter, high yield.

Merchant Bar (Round) - 50mm diameter.

Merchant Bar (Equal Angle) - 50 x 50 x 6mm.

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MEPS Add-ons
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Receive selected tables, including basis and transaction prices, one week before the report is dispatched.

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Steel Review.

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Copyright © 2019 MEPS International Ltd. All rights reserved. June

European No information contained in this report may be reproduced in any manner
Steel Review 2019
whatsoever without written permission from the publisher.