European hot-rolled coil prices remained sideways Feb. 26 amid an ongoing focus on regulatory concerns and stable demand fundamentals.
When asked about the proposed delay to the EU Carbon Border Adjustment Mechanism legislation, a North European service center source stressed that the current safeguard investigation outcome had a more immediate bearing on the market and was a key contributor to quieter import conditions.
“Everyone is waiting for the quota announcement,” said the source. “The quota poses more risk of cost penalties if you exceed it, and if we limit it, we also limit imports so we could see domestic prices climb quickly.”
“We also don’t know how much material is sat in EU harbors, waiting to be [customs] cleared so a smaller import quota, especially on certain products, could be quickly filled and a problem.”
Other midstream buyers shared expectations of further price increases, with a distributor saying, “Demand is still very low, with some doing speculative purchases as they anticipate the next price increases.”
A South European service center source pointed to an improved mood in the market, but demand and regulatory uncertainty were limiting momentum. According to the source, “The market is quite ready to move prices, but demand is slow and not allowing the room.”
“The service center market is concerned about the safeguards; the situation will be better when the review is announced,” the source added.
Platts assessed HRC in Northwest Europe and South Europe at Eur605/mt EXW Ruhr and EXW Italy, respectively, both stable day over day.
Platts assessed imported HRC prices in Northwest Europe unchanged at Eur550/mt CIF Antwerp, while the South Europe market also remained stable at Eur545/mt CIF Italy.
