Domestic European hot-rolled coil prices rose Jan. 10, with no major changes in demand reported since the start of the year. Market participants are cautiously optimistic about potential positive developments in the coming days, although the overall sentiment remains of wait-and-see.
A Germany based service center source noted that while there have been no significant changes in demand, there is expectation of positive developments over the next few days.
Similarly, a German buyer pointed towards steel producers continuing to attempt to increase price levels but noted minimal interest from the wider market.
An Italy based mill source echoed this sentiment, stating that the market remains stable with no big changes.
Tradable values for HRC were reported at Eur570-590/mt ex-works, with larger tonnages trading at Eur560-570/mt and smaller tonnages at plus Eur580/mt.
A South European distributor source mentioned workable prices for February delivery remaining similar to January’s closing levels at Eur570/mt for HRC and Eur670/mt for CRC base ex-works.
Platts assessed North European HRC prices at Eur570/mt ex-works Ruhr, up Eur10 on the day. Similarly, Platts assessed Southern European domestic HRC prices at Eur570/mt ex-works Italy, up Eur10 on the day.
“There are few import offers and they are not appealing due to the [minimal] price gap with domestic levels, alongside long delivery times, and potential risks of duties,” the South European distributor said.
The source also referred to continued foreign exchange rates adding additional pressure to the market.
Market participants are closely monitoring developments, with the hope that demand will pick up and provide clearer direction for pricing in the coming weeks.
Imported HRC prices in Northwest Europe increased to Eur535/mt CIF Antwerp Jan. 10, while prices in Southern Europe remained stable on the day at Eur530/mt CIF Italy.
“At the moment, it seems as if the hype surrounding green steel has died down,” the German buyer said, discussing carbon accounted steel.
Sources confirmed a continued premium offer level of Eur200/mt for for CO2e content below 1mt, under scopes 1-3, but buying interest remained thin.
Platts assessed Northwest European hot-rolled coil carbon-accounted at Eur630/mt ex-works Ruhr Jan. 10, up Eur10 on the day.