European domestic flat steel prices rose further in the week to Thursday March 12, with production costs raised following the breakout of new conflict in the Middle East and persistent import limitations affecting the market, trade sources said.
Following the start of the US-Israel-Iran conflict last month, the situation has escalated across the region, affecting trade routes and logistics, while also causing energy price spikes in Europe and higher costs for raw materials, Fastmarkets heard.
Market sources said that speculative demand had picked up because of changing geopolitical dynamics, adding that consumption levels in the European market remained low.
But while producers were increasing prices as a result of growing interest in domestic products, to avoid risks linked to imported materials, it was still unclear whether demand was strong enough to absorb all the increases, market sources said.
Meanwhile, mills were heard to be comfortably booked, and in no rush to place new orders.
Domestic
In Northern Europe, domestic prices for cold-rolled coil and hot-dipped galvanized coil increased in the week to Wednesday.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €790-830 ($912-958) per tonne on March 11, rising from €785-790 per tonne the week before.
Meanwhile, the weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, was €790-830 per tonne, widening from €795-800 per tonne in the previous assessment.
The new assessment matched higher estimates of workable levels reported by market sources.
In Southern Europe, domestic CRC and HDG prices were mostly unchanged.
Fastmarkets’ weekly price assessment for steel CRC, domestic, exw Southern Europe, was €805-820 per tonne on Wednesday, widening upward from €805-810 per tonne in the previous week.
The new upper end of the range was attributed to offers heard at €820 per tonne ex-works.
The weekly price assessment for steel HDG, domestic, exw Southern Europe, was stable at €785-790 per tonne on Wednesday.
Imports
Meanwhile, imported prices for these products were unchanged on Wednesday, with no new trading reported during the assessment week.
Import activity was limited following the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) earlier this year and other trade regulations still affecting buyers’ appetite for imported coil, Fastmarkets understands.
The weekly price assessment for steel CRC, import, cfr main port Northern Europe, was stable at €630-660 per tonne, while the assessment for steel CRC, import, ddp Northern Europe, stayed at €730-770 per tonne.
Fastmarkets’ weekly price assessment for steel HDG import, cfr main port Northern Europe, was stable at €650-700 per tonne, while the assessment for steel HDG import, ddp Northern Europe, held at €760-770 per tonne.
The weekly price assessment for steel CRC, import, cfr main port Southern Europe, was stable at €620-650 per tonne, while the weekly price assessment for steel CRC, import, ddp Southern Europe, was €730-780 per tonne, also unchanged.
Fastmarkets’ weekly price assessment for steel HDG, import, cfr main port Southern Europe, was stable at €660-700 per tonne, while the weekly price assessment for steel HDG, import, ddp Southern Europe, was also stable at €750-770 per tonne.
