Domestic prices for hot-rolled coil in Europe dropped slightly on Wednesday September 3, with demand still muted following the summer break, sources told Fastmarkets.
Fastmarkets’ calculation of the daily steel hot-rolled coil index domestic, exw Northern Europe was €575 ($670.40) per tonne on Wednesday, down by €4.79 per tonne from €579.79 per tonne on Tuesday September 2.
However, the Northern European index was up by €2.50 per tonne week on week and by €15 per tonne month on month.
Trading was limited as people returned from the summer break, with traders expecting prices to rise by the end of September.
Integrated mills in the region were heard to be pushing for higher prices around €600-610 per tonne ex-works for October-delivery coil, several sources said.
Some suppliers were aiming for even higher prices for November-delivery HRC, at €630 per tonne ex-works.
However, other buyer sources reported lower prices from the market, estimating achievable prices around €550-580 per tonne ex-works.
“Business remains quite slow,” a source said, adding that expectations on price increases depend on how much “protection” buyers will get from extra costs linked to the Carbon Border Adjustment Mechanism (CBAM) and other regulatory updates.
Meanwhile, prices for overseas coil increased slightly over the past week.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Northern Europe was €475-515 per tonne on Wednesday, increasing from €470-510 per tonne the previous week.
The upper hand of the range reflected lower end of offers from Turkey.
Italian market participants were largely holding back from trading, assessing the market after three weeks of summer break.
“We most likely will have two to three more quiet weeks in Italy before trading fully restarts,” a buyer source told Fastmarkets.
Buyer sources estimated tradable levels at €540-550 per tonne ex-works.
One trading source, however, argued that these levels were “hard to get” even from the most aggressive suppliers.
Mills in the region were hoping to achieve €560-580 per tonne ex-works for October-delivery coil.
A major supportive factor for potential price rises was the lack of “viable” import options amid looming CBAM implementation and new safeguard measures.
“Bullish sentiment is driven by potential import supply issues amid regulatory changes. Steel demand remains on the low side,” the second buyer said.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was calculated at €548.33 per tonne on Wednesday, down by €1.67 per tonne from €550 per tonne on Tuesday.
However, the Italian index was up by €8.33 per tonne week on week and by €20.83 per tonne month on month.
Prices for overseas coil were stable this week, with minimal interest for new bookings reported amid regulatory uncertainty.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Southern Europe was €470-520 per tonne on Wednesday, unchanged week on week.
Julia Bolotova, Davide Montagner
