European flat steel market continues upward trend

European flat steel prices continued to rise in September. At the end of September, the prices of hot-rolled coil, cold-rolled sheet, hot-dip galvanized steel and medium and heavy plate in EU steel mills rose to varying degrees, up by US $53, US $26, US $41 and US $25, respectively, at US $573, US $675, US $690 and US $577 (ton price, the same below), and the overall increase was slightly narrowed.

The European economy continued to recover. In September, the European Central Bank adjusted the contraction rate of Euro zone economy from 8.7% previously predicted to 8%. The initial PMI value of Markit manufacturing industry in Germany in September was better than expected, reaching 56.6%, a new high in more than two years. The initial value of Markit manufacturing PMI in France in September (50.9%) was also stronger than expected. With the continuous improvement of demand, flat steel market prices continue to rise. However, due to the second rebound of the epidemic situation, many European countries have implemented more stringent social distance restrictions, the epidemic prevention and control measures have been upgraded, the resumption of work and production is restricted, and the pace of economic recovery may be slowed down.

The overall steel price in Europe has reached the peak at the beginning of the year, and the rising rate may slow down in the later stage. It is generally expected that the European flat steel market prices will remain stable and strong in October.