It is well known that the usage rate ofcoatedflat steel products is higher in developed countries than in developing countries, with all research confirming this.
For instance, inJapan, the usage rate ofcoatedmaterial is 45 percent, while uncoated material (hot and cold rolled steel) usage stands at 55 percent. In EU-15 countries, the percentage ofcoatedusage stands at 40 percent, whereas the uncoated usage rate is 60 percent. On the other hand,coatedusage is 20 percent in theMiddle Eastagainst 80 percent usage of uncoated steel, and, lastly,coatedusage stands at 12 percent in theCIS.
Meanwhile, ex-ChinaHDG coil offer prices toEuropehave registered an uptrend, just like other flat steel products of the the same origin, and so it seems that the Chinese producers may see a loss of competitiveness as regards HDG coils. There were serious tonnages exported fromChinatoEuropein September and October, when ex-ChinaHDG offer prices indicated a considerable decline. However, the increasing ex-Chinaprices are making it difficult to export toEuropenow.
InItaly, HDG coil prices have been standing at €420-430/mt ex-works, with base prices at €470/mt ex-works inPortugal. Meanwhile, ex-IndiaHDG coil offers are at €525/mt CFR southernEuropefor 0.5 mm 100 gr/m² material. Buyers in the southern European countries in question are very careful about buying imports due to the lower domestic price levels compared to the import prices and also due to the approach of the New Year.