Tight supply is mainly seen in the cold-rolled coil segment. Market participants explained that the earlier availability of significant volumes of relatively cheap imports forced local suppliers to reduce production. While there are still some previously delivered volumes of imported CRC available in ports, after they are depleted it will be difficult to replenish them, considering a tighter safeguard quota and the burden of Carbon Border Adjustment Mechanism (CBAM) costs and anti-dumping duties.
In such conditions, the market’s reliance on locally produced CRC will increase, which in turn may spur mills to increase production. However, so far market sources report that one of the German suppliers will not have many volumes to offer for the spot market until the end of the year, having allocated the volumes to be produced to its regular customers.
In such conditions, the remaining producers are increasing prices.
In Northern Europe, the most recent deals as well as indications of tradeable levels came within €845-850 per tonne ex-works, versus €825 per tonne ex-works in the first half of August.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe moved up to €845-850 per tonne on August 26, from €825-830 per tonne on August 19.
After the assessment was filed, sales at €850-860 per tonne ex-works were reported.
The market in Southern Europe was comparatively quieter, as market participants, especially from Italy, had not yet fully returned after the summer break.
Most recent targets of Italian mills were voiced at €860 per tonne delivered or €845 per tonne ex-works before the end of the summer break, but no transactions were heard above €835 per tonne ex-works.
In the Iberian Peninsula, the most recent deals were said to be done at €860 per tonne delivered or €845 per tonne ex-works, with the key supplier targeting €880 per tonne delivered in the new round, which is netting back to €865 per tonne ex-works.
The assessment for steel cold-rolled coil domestic, exw Southern Europe was €835-845 per tonne on August 26, up from €830-835 per tonne on August 19.
Hot-dipped galvanized coil prices were somewhat lower compared with cold-rolled coil prices, reflecting better availability. However, a market source from Germany pointed out that demand from the automotive industry is picking up, which should help match HDG prices with those for CRC.
In Northern Europe, deals and tradeable levels for hot-dipped galvanized coil varied within €820-835 per tonne depending on the size of the cargo, which was reflected in the corresponding Fastmarkets assessment.
The weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €820-835 per tonne on August 26, widening upward from €820-830 per tonne on August 19.
In the Iberian Peninsula, indications of tradeable levels came within €840-850 per tonne delivered, netting back to €825-835 per tonne ex-works.
Meanwhile, the Italian market was still quiet.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Southern Europe moved up to €825-835 per tonne on August 26 from €815-825 per tonne on August 19.
On the import side, limited tonnages of South Korean CRC were heard offered at €860 per tonne DDP.
HDG offers from India were heard at $870-880 (€750-760) per tonne CFR.
Author: Vlada Novokreshchenova
