The European domestic market for steel hot-rolled coil became subdued in mid-April, despite expectations of a rebound at the time of the Tube and Wire trade fair in Dusseldorf, Germany, over April 13-17.
Trading remained muted because neither sellers nor buyers needed to move significant volumes of material. Customers’ stocks were said to be sufficient high, with both domestic and imported material booked early to secure availability before the EU’s new trade regime comes into force on July 1.
As a result, estimates of workable prices in Northern Europe retreated to €700-710 ($826-837) per tonne ex-works on April 17, from €700-720 per tonne ex-works earlier in the month.
At the same time, European suppliers continue to seek higher prices for July delivery material, with stricter new safeguard measures being the key factor rather than real demand.
Earlier in the week ended April 17, the European Council and European Parliament reached a provisional agreement on a new trade regime. A new tariff-rate quota (TRQ) system was now set to replace the existing steel safeguard measures, starting from July 1.
Several integrated mills indicated preliminary target offers at €750-770 per tonne ex-works for July-delivery coil, which were considered to be high by customers.
The mills were expected to come back with firm offers for third-quarter delivery coil once the country-specific TRQ volumes were revealed.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €708.33 per tonne on April 17, down by €1.15 per tonne day on day.
The index was also down by €11.67 per tonne week on week and down by €1.80 per tonne month on month.
The Italian market was also quiet, with €700-710 per tonne said to be the workable price on April 17, compared with €690-700 per tonne ex-works earlier in April.
Material supply in the country was reduced at the moment due to the suspension of HRC production at the beginning of April because of technical issues affecting a local re-roller. Operations were expected to be resumed in May.
In Northern Europe, an integrated producer from the Benelux area was also experiencing technical issues, resulting in a lack of material.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €700.00 per tonne ex-works on April 17, up by €1.25 per tonne from €698.75 per tonne on April 16.
The index was stable week-on week but up by €2.50 per tonne month on month.
On imports, there was information circulating in the market about a 25,000 tonnes cargo of Algerian HRC being booked at $800 per tonne for Southern Europe. A majority of market sources thought this price too high, but one source reported an offer from Algeria at $800 per tonne CFR.
Turkish HRC was said to be available at €640-665 per tonne CFR including anti-dumping duty, but excluding costs relating to the Carbon Border Adjustment Mechanism (CBAM).
Indian coil was heard offered at $710 per tonne CFR.
