European domestic prices for cold-rolled and hot-dip galvanized coil inched up over the past week, driven by good order books at local mills, stretching lead times and limited imports, sources told Fastmarkets on Wednesday March 8.
Reduced availability was the major driver for downstream flat steel price rises in Europe, sources said.
Most mills in Europe could offer May-June delivery CRC and HDG coil, while some German mills were said to be sold out for June delivery already.
On top of this, Tata Steel Netherlands declared force majeure on CRC deliveries in late February, which is supposed to have aggravated the supply tightness, according to sources.
Producers in Northern Europe were offering HDG at €940-950 ($999-1,010) per tonne EXW and CRC at €920 per tonne EXW.
Buyers reported bookings of CRC at €910-920 per tonne EXW and at €930-940 per tonne EXW for HDG coil during the assessment week.
A mill from Central Europe came back to the market with May-delivery CRC offers at €930 per tonne delivered, sources said.
Fastmarkets’ weekly price assessment for steel CRC domestic, exw Northern Europe was €910-920 per tonne on Wednesday, up by €10-20 per tonne from €900 per tonne on March 1.
Fastmarkets’ corresponding weekly price assessment for steel HDG domestic, exw Northern Europe was €930-940 per tonne on Wednesday, narrowing up by €10 per tonne from €920-940 per tonne on March 1.
Trading remained sluggish in Southern Europe in the week to Wednesday, however, sentiment was rather upbeat.
“Producers are well-booked and feel no pressure to reduce prices, lead times are a minimum eight weeks now for both CRC and HDG coil,” a trading source in the region said.
CRC offers in the region were heard at €920-930 per tonne delivered (€900-910 per tonne EXW), while HDG offers came in at €940-960 per tonne delivered (€920-940 per tonne EXW).
Buyer estimates of achievable prices were reported similar levels during the week.
“We have seen more activity from automotive sector lately. Demand is not booming, but it is there,” a distributor in the region said.
Fastmarkets’ weekly price assessment for steel CRC domestic, exw Southern Europe was €900-920 per tonne on Wednesday, up by €10-20 per tonne from €890-900 per tonne on March 1.
The corresponding weekly price assessment for steel HDG domestic, exw Southern Europe was set week at €910-940 per tonne on Wednesday, up by €10-30 per tonne from €900-910 per tonne on March 1.
Both assessments reflect the lower end of offers, rare deals and estimates of achievable prices.
Import offers to the region, meanwhile, were scarce and quite high, supporting the uptrend in the domestic market.
An offer for 0.5mm HDG with Z100 coating from Vietnam was reported at around $1,045 per tonne CFR for May shipment. That was considered too high by buyers, with bids heard at no higher than $1,020 per tonne CFR for such material.
And a CRC offers from Southeast Asia was heard at €850-870 per tonne CFR for May shipment, compared to the latest bookings at €835 per tonne CFR done from South Korea about three weeks ago.
Published by: Julia Bolotova