European buyers resist higher CRC, HDG offers

European cold-rolled and hot-dipped galvanized coil producers were aiming for higher prices in the week to Wednesday January 25, but buyers showed resistance, market sources told Fastmarkets.
Bullish sentiment arising from strong order books and high costs has caused European flat steel producers to gradually push for higher CRC and HDG prices.

Buyers, however, were skeptical about another round of price increases, citing insufficient demand from end users.

Notably, CRC offer prices were heard at €880-900 ($959-980) per tonne EXW, while HDG offer prices were reported at €900-930 per tonne EXW for April delivery.

Most buyers in Northern Europe said the tradable value for CRC was €830-850 per tonne EXW, although some bids still came in at €810 per tonne EXW in the week to Wednesday.

Trading was rather slow during the past week due to buyers holding back and assessing the new offers, while steel mills still had good order books and were in no rush to seek out new business, sources said.

Fastmarkets’ weekly price assessment for steel CRC domestic, exw Northern Europe was €830-850 per tonne on Wednesday, up by €10-20 per tonne from €820-830 per tonne on January 18.

Fastmarkets’ corresponding weekly price assessment for steel HDG domestic, exw Northern Europe was €840-850 per tonne on Wednesday, up by €10 per tonne from €830-840 per tonne on January 18.

The assessment was a reflection of offers and estimates of achievable prices made in the week to Wednesday.

Overseas CRC and HDG suppliers were mostly out of the market in the week to Wednesday and were expected to return with higher offers after the Lunar New Year holiday in Asia.

Published by: Julia Bolotova