Ongoing import tightness continues to be the key driver for domestic hot-rolled coil prices in Europe, Fastmarkets heard on Friday February 27.
Lower import activity is explained by the effect of the EU’s new Carbon Border Adjustment Mechanism (CBAM) and expectations of a new trade regime.
Offers from integrated mills in the region were heard at €700-720 ($826.27-849.88) per tonne delivered (around €680-705 per tonne ex-works). Most sellers said they were largely sold out of April-delivery coil, with May-delivery order books now open.
Estimates of achievable prices were reported at €670-690 per tonne ex-works for April-May delivery coil, depending on tonnage.
While some sellers called demand generally subdued, they confirmed that customers, including service centers, continue to book volumes despite sufficient stocks because buyers realize that the effects of import regulations are real and domestic prices will keep rising.
The same sell-side sources said on February 27 that upward price movements will have a moderate pace in the coming weeks with real demand remaining slow.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €686.07 per tonne on February 27, up by €0.34 per tonne from €685.73 per tonne on Thursday February 26. The index was up by €6.07 per tonne week on week and by €36.57 per tonne month on month.
Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was calculated at €670.63 per tonne on Friday, stable day on day. The index was up by €9.31 per tonne week on week and by €32.67 per tonne month on month.
Offers of May-delivery HRC were heard at €700-720 per tonne delivered (around €685-705 per tonne ex-works) from integrated suppliers and re-rollers. Tradeable levels were still reported at €680-690 per tonne delivered (around €665-675 per tonne ex-works).
One buyer said €680-685 per tonne ex-works could be achieved for smaller tonnages.
Most recent import HRC offers from Turkey were heard at €640 per tonne DDP and €630 per tonne DDP from Algeria.
