European domestic flat steel prices were largely stable in the week to Wednesday March 25 amid limited demand, despite recent price rises, Fastmarkets understands.
According to trade sources, the market was currently taking a wait-and-see approach with buyers cautious about accepting higher offers from domestic producers, while the availability of imported materials was still limited.
The introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) at the start of this year has curtailed import volumes into the bloc. This has, in turn, lent support to domestic prices across European markets.
Meanwhile, the escalation of the conflict in the Middle East has increased production costs for European mills by spiking prices for energy and raw materials, while also affecting freight costs and logistics.
In Northern Europe, estimates of tradable prices were heard within the range of €700-720 ($812-836) per tonne ex-works, but no fresh trading was reported during the day.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €715.00 per tonne on March 25, down by €1.00 per tonne from €716.00 per tonne on March 24.
The index was up by €4.88 per tonne week on week and by €29.17 per tonne month on month.
Meanwhile, the Italian market also remained quiet, with offers heard at €700.00 per tonne ex-works during the day.
“Demand in Italy is very weak because buyers hold enough stock,” a source in Italy told Fastmarkets, adding that mills were comfortably booked and expected that offer levels would continue to rise.
Estimates of workable prices in Italy were also heard within the range €690-700 per tonne ex-works.
Fastmarkets’ steel hot-rolled coil index, domestic, exw Italy, was calculated at €697.14 per tonne on Wednesday, down by €0.36 per tonne from €697.50 per tonne on March 24.
The index was down by €1.19 per tonne week on week but up by €31.31 per tonne month on month.
