Germany: Stainless Steel CR (Cold-Rolled) Coil prices have fallen in the European market as downstream inquiries have slowed in the first few weeks of January 2023. According to market participants, the European Stainless Steel CR Coil market started the year with large stocks, unchanged demand, and limited price growth prospects. However, market activity has increased month over month. Stainless Steel CR Coil prices are still lower than they were in January 2022. With ongoing geopolitical and economic uncertainty and volatility in steelmaking raw material costs, buyer confidence was low. According to distributors, inquiries are high, and sales volumes were consistent in the last week of January. EU Stainless Steel CR Coil manufacturers intend to raise their prices in the upcoming weeks. Most buyers, however, expect to place at least some stock replenishment orders with mills in February and March 2023 in preparation for April and June 2023 deliveries.

According to our sources, the pace of destocking Stainless Steel CR Coil is expected to accelerate during the first quarter of 2023, aided by a decrease in import arrivals. Safeguard quota balances for Stainless Steel CR Coil, Sheets, and strips from all countries except Turkey remain available to protect the domestic industry from imports causing significant destruction. Although Stainless Steel CR Coil import offers continue to be lower than domestic prices.

On the other hand, buyers concerned about the future direction of Stainless Steel CR Coil demand and prices find a more expensive but faster delivery from local suppliers to be more attractive. Indian-origin import volumes remain high due to a significant cost advantage of more than USD 1100/MT in the stainless steel market. Even though the "basis plus alloy" pricing method is rarely used in deals between manufacturers and their major customers, European mills continue to publish monthly alloy surcharges. Nonetheless, several buyers have expressed concern that eliminating this month's alloy surcharge rates would lead to extremely low or, in some cases, negative basis prices for the current fixed Stainless Steel CR Coil quotation offers.

As a result, ChemAnalyst anticipates that Stainless Steel CR Coil prices will rise as buying activity improves next month. As service centers and stockists begin to plan their material requirements for the second quarter of 2023, mill prices for Stainless Steel CR Coil may rise modestly in the short term.