European domestic prices for steel cold-rolled coil and hot-dipped galvanized coil increased in the week to Wednesday March 25, supported by prolonged limitations on imported materials and rising production costs, affecting local prices.
Despite real demand in Europe remaining relatively weak while buyers resist price increases, market participants saw a steady upward trend in prices with mills pushing higher offer levels across the region, Fastmarkets understands.
The escalation of the conflict between the US and Iran has had a profound effect on import routes, limiting the flow of steel to the block, especially from Asian origins.
This, paired with the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) at the start of the year, has badly affected import volumes.
Shifting geopolitical dynamics have also resulted in spikes in the costs of energy and raw materials, which have led European producers to increase prices, while freight and logistics have also been affected.
According to market sources, actual consumption has shown a downward trend in recent weeks, while market uncertainty, mainly driven by the situation in the Middle East, was also having an effect on domestic production.
In Northern Europe, domestic CRC and HDG prices increased in the week to March 25.
For domestic CRC, a sale was reported at €830 ($959) per tonne ex-works, while estimates of tradable levels were reported around €800-820 per tonne ex-works during the assessment period.
Heightened volatility in energy prices was expected to have a stronger effect on domestic CRC production, mainly due to the energy needs of the processes used by European mills, such as batch annealing.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €820-830 per tonne on Wednesday, narrowing upward from €800-830 per tonne the previous week.
Meanwhile, the weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, was €820-830 per tonne, rising from €800-810 per tonne the previous week.
The new assessment aligned with some higher estimates of workable levels heard around €820-830 per tonne ex-works.
Meanwhile, in Southern Europe, prices for domestic CRC remained stable in the week to Wednesday.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Southern Europe, was €810-840 per tonne on Wednesday, unchanged week on week.
But domestic HDG levels in Southern Europe increased during the assessment period.
An offer of HDG was heard at €840 per tonne ex-works, while estimates of workable levels were heard within the range of €820-830 per tonne ex-works.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Southern Europe, was €820-840 per tonne on Wednesday, rising from €800-830 per tonne the previous week.
Import flows into Europe were still limited amid regulatory and geopolitical developments, with buyers increasingly turning toward domestic suppliers while imported materials become riskier to obtain.
Prices for imported CRC and HDG were unchanged during the week, for both CFR and DDP assessments.
Amid the difficult situation for importers, Asian suppliers were recently heard to be offering material on an FOB basis as a means to avoid fluctuations in transport-related costs. But no new offers or trading activity were reported during the assessment period.
