European hot-rolled coil prices were largely stable on April 22 as market participants noted further direction on the EU’s new safeguard measures would be needed before making any sizeable trading decisions.
“The market will stay the same, quiet with normal demand until quotas with numbers allocated to each country are announced,” one Italian-based trader said, also highlighting that some people were underestimating the impact of the measures.
Offers for domestic HRC in Italy were reported at Eur700-720/mt ex-works, while tradable values were pegged at Eur695-700/mt ex-works.
In Germany, some service centers with leftover stock were reported to be offering material on a lower basis compared to mills, who were holding offers firm.
Service center offers were reported at Eur705/mt ex-works Ruhr, while mill offers were heard between Eur720-750/mt ex-works Ruhr. Workable levels for normal tonnages were reported at Eur700-715/mt ex-works Ruhr, while sources noted for larger tonnages, Eur680-695/mt would be achievable.
“To be honest, the EU mills are quite happy with their feet on the desk,” one Benelux-based service center said. “They are cherry picking orders as there are no imports coming.”
A North European-based mill source confirmed the regulatory situation was positive for sellers, but noted that they had been unsuccessful in their attempts at hiking prices to Eur750/mt, and that further increases would be more likely to come in H2.
Platts assessed in Northern Europe at Eur705/mt ex-works Ruhr, down Eur5 day over day, and in Southern Europe at Eur695/mt ex-works Italy, up Eur5 across the same period.
In the import market, uncertainty remained the main talking point.
“If you make a purchase today, it would be for July customs clearance, and nobody knows what this will look like,” the same trader said.
Algerian HRC offers for S355 grade material were reported at $830/mt CFR Italy, excluding CBAM costs, but sources deemed this unworkable in the Italian market.
Turkish export offers were reported at $630-$650/mt FOB, unchanged from levels heard last week, but participants said it would be too risky to import from the region given the upcoming regulatory changes.
Platts assessed imported HRC in Northern Europe at Eur550/mt CIF Antwerp, and in Southern Europe at Eur540/mt CIF S. Europe, both stable day over day.
Author: Riley Waters | Charles Thompson
