Italian rebar prices fluctuate on poor activity
Italian rebar prices are fluctuating by €10/tonne ($10.90/t) each week despite a period of general stability as producers fail to secure increases, according to buyers and sellers who spoke to Kallanish.
The low point of the range from has decreased from last week, but the level of orders is reported to be stable in comparison to September.
According to an agent, “activity remains subdued; customers do not intend to commit to volumes in this market and continue to purchase a few hundred tonnes per week.”
Values have remained relatively consistent in recent weeks, despite distributors’ predictions of an additional price decline in the weeks ahead.
Current transactions in the domestic market are at approximately €270-290/t base ex-works.
A buyer reports purchasing about 500 tonnes/week.
Another large distributor says buyers are not adopting a wait-and-see attitude but continue to purchase the necessary tonnage two to three times a month.
Including additional size extras at an average cost of €260/t, current values in Italy are hovering this week at €530-560/t ex-works.
The current price for domestic mesh stands at approximately €380-390/t, not accounting for transport costs. An extra fee of €300/t applies for size extras, sources suggest.
Natalia Capra France
ArcelorMittal increases longs prices in Europe: sources
ArcelorMittal has announced it is to increase its prices for long products throughout Europe, Kallanish hears from market sources.
The decision was driven by the present unsustainability of prices and the increasing costs of raw materials globally.
Companies both upstream and downstream are at risk of financial instability due to the current low prices for long products in Europe, several market participants throughout the value chain report.
The market must regain some profitability, one source comments.
According to sources, ArcelorMittal is increasing prices of all commodity grade longs, including rebar, beams, and drawing quality wire rod, by €40/tonne ($43.90/t).
The current increase is effective immediately for all new bookings.
Natalia Capra France
EU coil price increases start bearing fruit
Some hot rolled coil contracts in the EU are reported to have concluded at higher prices following increases recently implemented by ArcelorMittal, Kallanish hears.
HRC contracts have been heard concluding at €590/tonne ($648.40) base ex-works, up from last week’s average level in Europe of €530-540/t base ex-works, suggesting recent increases implemented by ArcelorMittal have been successful.
The majority of EU producers are currently offering a November lead time and are aligning their quotes with ArcelorMittal’s new HRC quotes, which are priced at €590/t base ex-works.
Nevertheless, volumes are exceedingly low and transactions are still scarce, with numerous buyers and sellers confirming the market requires additional time to absorb the increases.
The market downstream remains sluggish, and some buyers are firmly opposed to the increases.
European producers are reported to have received a high volume of orders at the previous prices in the final days of September and the first days of October, as customers foresaw the increase. Some buyers have adopted a wait-and-see approach as a result of the hikes.
A service centre in Italy reports increased calls from customers and orders in a sudden surge of apparent demand. Customers would prefer to buy coil derivatives at previous prices.
This, however, is not real consumption. Rather, it indicates that buyers are becoming increasingly concerned about the possibility of material scarcity and the potential for price increases.
Another source in Italy indicates the automotive sector, in particular, is experiencing a far greater degree of slowdown than anticipated, which is causing a challenging situation downstream.
The manufacturing sector in Europe is currently experiencing a crisis, and downstream demand for flat steel is expected to remain lacklustre.
However, the EU’s recent turn towards protectionism has virtually eliminated the possibility of purchasing coils through imports. Some Asian suppliers, including India, have also raised their prices to €590/t cfr, while Turkey is also reported to be at €590/t, including duty.
In Italy, re-rollers have continued to purchase from the import market at competitive prices, while service centres are refraining from doing so.
As of 1 October, the majority of Italian HRC import buyers had successfully cleared through customs the stocks they had in consignment at ports, coinciding with the renewal of EU import quotas.
Stocks of this material, ordered in March and April, will deplete rapidly, according to a source, and pursuing import options in future will remain challenging.
Coil prices are expected to rise if European steelmakers reduce production by the end of the year or in the first quarter of 2025.
The source anticipates HRC will increase, if cuts are implemented, to above the €600/t base ex-works level, with the possibility of reaching €650/t base ex-works due to a shortage of available material.
At present, HRC prices as well as coil derivative values are deemed unsustainable.
Following ArcelorMittal’s increases, Italian re-rollers and service centres said coil derivative prices are poised for a price increase.
Natalia Capra France
Steel HRC prices in Europe still below mill target offers
This week, European suppliers have been increasing their offer prices for HRC, citing mounting costs.
“The lowest offers are no longer [available] but buyers are still hesitating,” a buyer source in Europe said. “[There is] no change in real demand. Only an apparent demand improvement could support the price rise that is being asked [for] – if buyers need to restock before the end of 2024.”
Offer prices for November-December delivery HRC were heard at €560-570 ($614-625) per tonne ex-works. And for larger tonnages, prices of €540-550 per tonne exw were still possible, sources said.
Buyer sources estimated tradable values at €530-540 per tonne exw, but mill sources said the lower end of that range was no longer acceptable.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €545.38 per tonne on Tuesday, up by €7.30 per tonne from €538.08 per tonne on October 7.
The index was up by €8.39 per tonne week on week but down by €35.37 per tonne month on month.
In Southern Europe, meanwhile. Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €540.00 per tonne on Tuesday, unchanged from October 7.
The Italian index was up by €7.00 per tonne week on week, but down by €40.24 per tonne month on month.
Market participants reported transactions for November-delivery HRC in Italy at €540-555 per tonne delivered (€530-545 per tonne ex-works).
But after ArcelorMittal’s move last week to increase HRC prices in Europe by €40 per tonne, Italian suppliers were also mulling a price rise, Fastmarkets heard.
“For December delivery, European and Italian mills want a €20-40 per tonne price rise as a first step,” a buyer in Italy said.
Sources also reported high offers for imported HRC in the week started October 7.
New offers from Asia of HRC for November shipment to Italy were reported at €550-560 per tonne CFR, compared with €520-540 per tonne CFR in late September.
But sources told Fastmarkets that this price was totally unworkable for the European market. Buyer price ideas for Asia-origin coil were no higher than €500-520 per tonne CFR, they added, but no such offers were available in the market.
Published by: Julia Bolotova
EU HRC prices fall slightly on day on wider offer levels
Domestic European hot-rolled coil prices inched lower on Oct. 8 as sources continued to cite slower spot market conditions amid wide offer levels.
“The whole market is quiet at the moment, we just need time for the new offer levels to go through,” a Germany-based steel mill source said. “Maybe [offer levels] can reduce a bit in the coming weeks, but import prices aren’t a problem for us, they’re more expensive than domestic price levels.”
The same source pointed to continued difficulty in passing costs along the value chain while discussing carbon-accounted steel premiums.
“There is no demand for green steel, nobody is willing to pay regardless of the offer levels; the downstream customers won’t pay for it,” the source said.
Platts assessed Northwest European hot-rolled coil carbon accounted at Eur615/mt ex-works Ruhr Oct. 8, down Eur15/mt on the day.
Similarly, a service center source said mill offer levels in the market were rising, and confirmed the offers heard Eur590/mt earlier in the week.
“Mills will push prices up, but demand is very poor,” the service center source said. “You cannot convince customers to buy at these levels.”
Platts assessed Northwest European HRC at Eur550/mt ex-works Ruhr on Oct. 8, down Eur5/mt on the day. Offers were reported at Eur590/mt delivered Germany.
Meanwhile, Platts assessed domestic HRC in Southern Europe at Eur540/mt ex-works Italy, also stable on the day.
Platts assessed imported HRC in Northwest Europe at Eur525/mt CIF Antwerp, stable on the day, and assessed imported HRC in Southern Europe at Eur525/mt CIF Italy, stable on the day.
Charles Thompson | Devbrat Saha
Italian HRC buyers clear customs, fear high duties
The hot rolled coil market in Italy is currently facing notable stagnation, characterised by low order volumes and subdued consumption from end-users and coil service centres, industry sources tell Kallanish.
As of 1 October, the majority of HRC import buyers successfully cleared through customs the stocks they had in consignment at ports, coinciding with the renewal of EU import quotas.
It is anticipated that Italian buyers will incur an average duty of approximately 10%, or potentially slightly less, contingent upon the material’s origin. The duty rates for HRC stand at 4.2% from Egypt, 7.5% from Taiwan, 12.5% from Japan and 10.5% from Vietnam.
Contracts that were implemented in March and April at HRC pricing more than €100/tonne ($110.3) higher than current levels will be subject to duty payments. Service centres and re-roller sources indicate they will face significant financial challenges due to the duty, particularly in light of current low consumption levels and soft pricing.
A service centre doubts the recent increases implemented by ArcelorMittal will be successfully passed on downstream. “Certain customers are facing challenges in maintaining production levels throughout the week. Some have resorted to reducing their output. Additionally, the automotive industry, along with other sectors, is currently unable to absorb the existing steel production levels,” the source comments. A re-roller anticipates values may begin to rise gradually and expects customer activity to increase in October, following the sluggish purchasing observed in September.
Another service centre believes existing coil and derivative capacity is excessive. This, coupled with service centres’ high stocks, may hinder any prices hike.
Service centre quality HRC values in Italy are at approximately €530/t base ex-works but the level of €520/t has been heard in Germany. Cold rolled and hot-dipped galvanised coil are at €650-670/t base ex-works, with the low point of the range being paid for CRC.
ArcelorMittal told customers last week it is raising coil offers in Europe, with immediate effect. The steelmaker is now reported to be offering HRC at €590/t base ex-works, up some €40/t compared with offers registered last month. Other northern European producers are following suit (see Kallanish passim).
Natalia Capra France