European prices for domestic cold-rolled coil and hot-dipped galvanized coil grew in the week to Wednesday April 8, supported by limited import availability and high production costs, despite subdued demand from customers.
Import offers remained scarce in the market in the run-up to the implementation of new steel safeguards measures, set to come into effect on July 1 and which are expected to significantly reduce import quotas.
The measures, paired with current import limitations posed by the EU’s Carbon Border Adjustment Mechanism (CBAM), are expected to strengthen buyers’ appetite for domestic steel in the third quarter, Fastmarkets understands.
According to sources, import offers were mostly available for June shipment.
Meanwhile, buyers were heard to be sufficiently stocked up for the time being, while mills were heard to be maintaining good order books.
“We have a full stock situation and no demand from customers, so it is not the time to speculate on higher prices,” a market source in Northern Europe told Fastmarkets.
In Northern Europe, prices for domestic CRC and HDG increased in the week to Wednesday.
Estimates of workable levels for CRC were heard hovering around €820-830 ($958-969) per tonne ex-works, with some offers also reported around €820-840 per tonne ex-works.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Northern Europe was €820-830 per tonne on Wednesday, rising from €800-820 per tonne the previous week.
Meanwhile, estimates of workable levels for domestic HDG were heard around €820-830 per tonne ex-works during the assessment period.
The weekly price assessment for steel hot-dipped galvanized coil domestic, exw Northern Europe was €820-830 per tonne on Wednesday, narrowing up from €810-830 per tonne previously.
In Southern Europe, domestic prices for CRC and HDG also increased.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Southern Europe was €820-825 per tonne on Wednesday, rising from €800-820 per tonne the previous week.
The upper end is based on a deal heard at €825 per tonne ex-works, with offers also heard around that level; no confirmed transactions were heard below the assessed range.
Meanwhile, offers for domestic HDG were heard within the range of €825-835 per tonne ex-works during the assessment period.
Therefore, Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil domestic, exw Southern Europe was €825-835 per tonne ex-works on Wednesday, rising from €800-830 per tonne week on week.
Furthermore, the recent escalation of the US-Iran war has also caused spikes in costs for energy and raw materials, which has supported European domestic prices, Fastmarkets heard.
According to sources, once people “check the risks and the quality” of import offers, especially when factoring in new safeguard measures, there are no “good offers” in the market, with buyers having to assess logistics and transportation costs.
Import prices for CRC and HDG across the region remained unchanged in the week to Wednesday, both on a CFR and a DDP basis, reflecting the cautious stance from buyers on imported materials amid the lack of clarity with quotas and new regulations, Fastmarkets understands.
