The European domestic hot-rolled coil market strengthened on Monday, March 2 as higher-priced transactions emerged, supporting mills’ upward price ambitions even as demand remains subdued.
Several sources reported the level of €700 ($827) per tonne delivered, equivalent to €685-690 per tonne ex-works, to have strengthened in deals versus €670-690 per tonne ex-works heard last week. Meanwhile, one source reported the level of €700-710 per tonne ex-works being achieved by one of the German producers.
Mills’ strong order books and longer than normal lead times supported by the slowdown of import activity caused by the introduction of the Carbon Border Adjustment Mechanism (CBAM) earlier this year were said to be the key reasons for the continuing upward price correction.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €692.50 per tonne on Monday March 2, up by €6.43 per tonne from €686.07 on Friday February 27. The index was up by €10.21 per tonne week on week and by €41.67 per tonne month on month.
Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was calculated at €676.25 per tonne on March 2, up by €5.62 per tonne from €670.63 per tonne on February 27. The index was up by €10.62 per tonne week on week and by €24.58 per tonne month on month.
In Italy, offer prices varied within €680-705 per tonne ex-works depending on the supplier.
Key tradeable levels were said to still vary within the range of €660-670 per tonne ex-works while small-tonnage cargoes were heard at €680-690 per tonne ex-works.
Some market participants voiced concerns that the US-Iran conflict may indirectly affect the market due to the rise in international oil and gas prices, which in turn could push electricity prices higher. Electricity costs had already been on the rise.
A large German HRC buyer said some tube and pipe mills in the region withdrew offers from the market while considering some corrections and added that the flat steel market may be more affected than the long steel market because of its exposure to energy-intensive sectors.
Additionally, sources from different parts of the world reported growing freight and insurance costs, which is putting import in an even less favorable position than now.
