Cold rolled and hot-dipped galvanised coil prices are surging in European contracts by some €50/tonne ($53) compared to January, Kallanish notes.
Prices are currently higher in Eastern European countries. One mill in Romania is implementing maintenance stoppages, while the void left by Dunaferr idling production in Hungary is being felt. Producers in Western and southern Europe are supplying Eastern Europe, where demand is strong and prices for HDG are at €950-980/tonne base delivered and €10/t less for CRC.
In Italy, Spain, Germany and France, there is a larger number of offers and slightly lower prices than in Eastern Europe. Here, values for HDG are at €920-930/t base delivered and €10/t less for CRC, sources suggest.
Italian lead times now stretch to April, with producers not quoting yet for May allocations. Sources forecast values to continue to hike in Europe slowly but gradually. Italian and Spanish demand is slightly slower this week as buyers purchased significantly in January. However, no competitive imports and high hot rolled coil prices will contribute to sustaining the market.
Natalia Capra France