The price of hot rolled steel rolls continues the upward trend

The price for hot rolled steel rolls (HRC) in Western Europe has not slowed down its upward path in the last month. Demand continues to exceed supply for the flat rolled product, industry sources said on June 1.

According to statistics, the weekly increase in the imported price of HRC in Europe was approximately 20-30 EUR/ton. And the weekly increase in factory prices in Europe is approximately 20 EUR/ton.

The automotive and construction sectors are behind the high demand for hot rolled steel rolls

New registrations for passenger vehicles in the European Union increased by 218.6% year-on-year. In April, to approximately 862,226 units from 270,651 units. The European Automobile Manufacturers Association (ACEA) declared on May 19.

Restrictions from the April 2020 COVID-19 pandemic were the main reason behind the increase, however, the association said.

„Indeed, despite this large percentage increase, last month’s sales volume was almost 300,000 units lower than the one recorded in April 2019”, ACEA added.

New vehicle registrations for the first four months of 2021 increased by 24.4%. At 3.42 million units from 2.75 million units, ACEA mentioned.

Supply chain pressures in the auto industry, especially for raw materials, are also driving up prices for Tesla vehicles, according to reports, citing the automaker’s CEO Elon Musk.

Tesla’s main production site is in California. The company also has an operating plant in Shanghai and plans to open an additional one in Berlin in 2021.

The construction sector

Germany also reported difficulties in the timely supply of the necessary materials. For example, there was a shortage of steel, the Institute for Economic Research in Munich said on June 1.

„In building construction, 43.9% of companies reported in May that they have problems with purchasing construction materials on time. This increased from 23.9% in April and only 5.6% in March”, according to the same institute.

Also, the increase in the prices of iron ore, the main component of the steel industry, translated into higher costs for the steel produced.

Industry sources are of the opinion that prices will continue to rise in the next month. With the probability of a slowdown in August, as most of Europe will be on vacation at that time.

Article source: https://agmetalminer.com/2021/06/03/european-hot-rolled-coil-prices-show-no-sign-of-slowing-some-end-users-complain-of-shortages/