Domestic prices for cold-rolled and hot-dipped galvanized coil have increased in Europe in the week to March 8 supported by reduced supply and good order books of the mills.
Platts assessed domestic prices for cold-rolled coil in Northwest Europe at Eur940/mt ex-works Ruhr, up by Eur15/mt on day and up by Eur35/mt on week.
The assessment was based on tradable values reported at Eur930-950/mt ex-works Ruhr.
The assessment for the domestic hot-dipped galvanized coil prices in the region also increased by Eur20/mt on week to Eur950/mt ex-works Ruhr on March 8.
A deal has been reported at Eur950/mt ex-works Ruhr and the average tradable values – at Eur950-970/mt ex-works Ruhr.
One steelmaker also indicated that they were aiming for Eur1,000/mt ex-works Northwest Europe for contracts, but the price was deemed as unworkable by majority of sources.
The price rise has been supported by full order books of the steelmakers. The European mills have been offering late May-July delivery downstream coil and they felt pressure to give discount to sell volumes, sources said.
End user demand, in the meantime, remained stable and end consumers have been rejecting higher prices. As a result, distributors have been focused on purchases of smaller lots of coil.
The technical issues at the cold-rolling mill at Tata Steel in the Netherlands, that made the mill to invoke force majeure, has also contributed to the bullish mood in the market.
“Supply is less due to Tata Steel situation for sure. I heard that they booked a bit volume of CRC from a German mill to be able to produce needed HDG volumes,” a German service center said. “So CRC volumes are down, and it seems that dome HDG specifications will be in shortage.”
European buyers have not been able to substitute domestic supply with import due to longer lead times – arrival late July-August, risks related possible changes in safeguard measures after the review in June and uncertainly in the upwards tend sustainability through summer.
Platts assessed domestic prices for cold-rolled coil in South Europe at Eur900/mt ex-works Italy on March 8 , up by Eur10/mt on day. Market sources estimated tradable values at Eur880-920/mt ex-works Italy and offers have been reported at Eur950/mt delivered Italy.
Platts assessed domestic hot-dipped galvanized prices up by Eur20/mt on week to Eur930/mt ex-works Italy on March 8. The assessment was based on achievable prices heard at Eur910-950/mt ex-works Italy and offers reported at Eur950/mt delivered Italy.
Platts is part of S&P Global Commodity Insights.
— Maria Tanatar