European domestic cold-rolled coil (CRC) and hot-dipped galvanized coil (HDG) prices decreased in the week to Wednesday April 15, with reports of subdued trading activity as buyers resisted higher prices from mills, Fastmarkets heard.
The downward movement followed a recent upward momentum observed in European domestic flat steel coils, supported by tighter import availability as a result of the EU’s Carbon Border Adjustment Mechanism (CBAM) and new safeguard measures, set to come into effect on July 1.
Sources said that there was currently little demand for imported material in Europe, while buyers’ appetite for domestic coil also appeared to have subsided, with the market remaining in a wait-and-see mood.
CRC and HDG were heard to be available for July delivery, according to a source, with reports of mills remaining sufficiently booked.
In Northern Europe, prices for domestic CRC and HDG decreased in the week to Wednesday.
Estimates of workable levels for CRC were heard at €810-820 ($955-967) per tonne ex-works, while offers were reported in the range of €815-820 per tonne ex-works.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe was €810-820 per tonne on Wednesday, down from €820-830 per tonne the previous week.
The weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €810-820 per tonne on Wednesday, also down from €820-830 per tonne the previous week.
The updated range matched sources’ estimates of workable levels, also heard around €810-820 per tonne ex-works during the week.
According to a source in Northern Europe, market sentiment had become “a little bit negative” as a result of recent geopolitical developments, which have affected growth rates.
“Nobody expects that prices will collapse, but third-quarter market increases might not be realistic,” the source added.
Meanwhile, Southern European domestic CRC and HDG prices also decreased.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Southern Europe was €800-825 per tonne on Wednesday, widening downward from €820-825 per tonne the previous week.
The upper end of the range was estimated to offers heard around €825 per tonne ex-works, while estimates of tradable levels were heard at €800 per tonne ex-works.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Southern Europe was €810-820 per tonne on Wednesday, down from €825-835 per tonne the previous week.
The lower end was estimated to a deal heard at €810 per tonne ex-works, while offers were reported around €815-820 per tonne ex-works.
Meanwhile, import prices for CRC and HDG across the region were unchanged in the week to Wednesday, both on a CFR and a DDP basis, amid a lack of clarity around new trade measures.
Offers for HDG from Japan to Italy were heard around €780-789 per tonne CFR, but no new trading activity was reported during the assessment period.
“Nobody knows how much the new safeguards are going to impact [imports],” a source told Fastmarkets, adding that there was no significant demand for imported material, especially now that delivery times have been extended.
The escalation of the conflict in the Middle East has recently led to higher freight costs and broader logistical issues, especially for Asian importers, Fastmarkets heard.
