European flat steel prices continued to fall in October. At the end of October, the prices of hot rolled steel coil, cold rolled steel plate and hot-dip galvanizing steel in EU steel mills fell by 29 US dollars, 17 US dollars and 22 US dollars on month basis, respectively, to 466 US dollars, 555 US dollars and 588 US dollars. The prices of medium and thick steel plate stabilized and recovered this month, up 5 US dollars from last month, to 610 US dollars.
The main reason for the continuous decline of the European flat steel market is the continuous downturn of the European market and the weakening demand caused by the economic weakness. In addition, the strict import control of steel in the United States has also led to the choice of the European market as the global steel export resource.
Although the European Union implements the quota system of steel trade, it cannot effectively reduce the supply. As a result, European market prices continue to decline. According to the European Iron and Steel Association, EU finished steel imports grew by 12% in 2018, but the size of the local market grew by only 3.3%. In the face of this situation, what the European steel industry can do is to further restrict the import resources into Europe. The European Union has planned to reduce the annual growth of steel import quota from 5% to 3% from October 1. The European flat steel market is expected to remain weak in November.
