Domestic prices for steel hot-rolled coil (HRC) edged up in both Northern Europe and Italy on Monday September 21, while sources reported steady but gradual price increases linked to weak demand and limited import activity.
In Northern Europe, sources said prices were gradually increasing but demand remained weak as there was no major restocking in the market.
A supplier source in the region indicated workable HRC levels for October delivery at €740-750 ($850-861) per tonne ex-works, adding that it was aiming to achieve €760 per tonne ex-works, depending on how demand develops.
“Mills are carefully observing the situation,” the supplier said on Monday.
The same source said HRC import activity into the region was very quiet due to the high risks related to safeguard quotas and Carbon Border Adjustment Mechanism (CBAM), so buyers were staying a bit away for the moment.
The supplier also said that it was seeing prices mostly stable in the upcoming period, with an ambition to reach levels around €800 per tonne ex-works in the domestic market by the end of the year.
Meanwhile, a distributor source in Germany reported offers for material within the range of €750-760 per tonne delivered on Monday, which nets back to €730-740 per tonne ex-works, adding that the market was very quiet and demand remained weak.
The same source said that levels around €720 per tonne ex-works, which were previously quoted by sources in the market on Friday September 18, were no longer achievable.
On the other hand, a buyer source said on September 21: “Whilst there may be odd deals at lower levels, we would agree that around €750 [per tonne ex-works] is a fair estimate, trending to €775 [per tonne ex-works].”
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €745 per tonne on September 21, up by €7.50 per tonne from €737.50 per tonne on September 18.
The index was also up by €7.50 per tonne week on week and by €22.92 per tonne month on month.
In Italy, the picture of achievable prices in the market remained slightly blurred, with buyers and suppliers reporting different levels.
Latest offers were reported at €750 per tonne delivered, equivalent to around €735 per tonne ex-works after deducting €15 per tonne in delivery costs, a trade source said on Friday September 18.
The same source added that there was limited room for negotiation, indicating workable levels for hundreds of tonnes at €750 per tonne delivered and for larger volumes at €740-745 per tonne delivered (€725-730 per tonne ex-works) on the same day.
Meanwhile, a distributor source said on Monday that the minimum levels it was hearing were within the range of €730-740 per tonne ex-works, declining to offer lower prices.
“Honestly, I think that in this moment buyers are not realistic. Price is going up week after week and some numbers they declare are not anymore available, according to my opinion,” the same source said.
A second trade source quoted achievable levels in the range of €730-735 per tonne ex-works on Monday, in line with the latest deals heard in the market on September 17. The source added that prices at €725 per tonne ex-works sounded “optimistic” under current market conditions.
Thus, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €733.75 per tonne on September 21, up by €3 per tonne from €730.75 per tonne on September 18.
The index was down by €2.50 per tonne week on week but up by €21.25 per tonne month on month.
One of the main factors affecting HRC availability in Italy remained the uncertain future of the former Ilva steelworks in Taranto, which has been ordered to suspend hot-end operations by October 28.
However, market participants were uncertain how the situation would develop. Italy’s Court of Cassation, the highest court of last resort in the country, is scheduled to hear appeals against the shutdown order on October 20, only days before the deadline for the closure to take effect, a trade source told Fastmarkets.
As a result, many participants remained in a wait-and-see mode regarding the producer’s future and its potential impact on domestic steel supply.
At the same time, a company source at Metinvest’s Ferriera Valsider mill in Italy told Fastmarkets that it was not taking new orders yet. “We are producing but the potential space for new orders, if any, would be for December production earliest,” the same source said.
