European hot-rolled coil prices climbed higher as suppliers limited offered tonnages in the rising markets, sources told Fastmarkets on Thursday March 12. Positive sentiment, supported by a shortage of imports, continued to dominate the European flat steel market.
European producers were said to be limiting offered tonnage to the market in order to not “overcommit” and to retain flexibility should prices continue to rise.
Offers for May delivery coil were reported at €710-750 ($823-870) per tonne based delivered (around €690-735 per tonne ex-works) from integrated suppliers in Northern Europe during the week beginning Monday March 9.
Italy-origin coil was heard offered to Italy at €720-730 per tonne base delivered, but with limited volumes.
Transactions for limited tonnages of HRC were heard done at €710-720 per tonne ex-works during the week, in Germany and the Benelux area.
Some buyers stepped back from the market, digesting the price rally.
“We are not booking at these levels [above €700 per tonne ex-works]. Last deals we did for a few thousand tonnes were around €700 [per tonne ex-works],” a buyer in Germany said.
Estimations of achievable prices were largely coming in the range of €700-710 per tonne ex-works form industry stakeholders.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €707.19 per tonne on March 12, up by €1.21 per tonne from €705.98 on March 11.
The index was up by €6.56 per tonne week on week and by €52.19 per tonne month on month.
After the index was published, a deal was also reported at €730 per tonne ex-works, but it was not widely confirmed by the market so far.
Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €692.50 per tonne ex-works on March 12, up by €3.75 per tonne from €688.75 per tonne on March 11.
The index was up by €12.50 per tonne week on week and by €41.50 per tonne month on month.
A local integrated mill was maintaining offers at €710-720 per tonne base delivered [around €695-705 per tonne ex-works] with limited flexibility for discounts, sources said.
Offers from re-rollers were heard at €700 per tonne ex-works.
Buyers estimated the market levels at €680-690 per tonne ex-works.
In the secondary market in the week commencing March 9, some steel service centers (SSCs) claimed to have achieved €800 per tonne CPT for 4 mm S235 grade HR sheet, indicating improved buying activity. Other sources reported that achievable prices were still hovering around €750-770 per tonne CPT, but buyers were showing more acceptance of higher prices.
“We have much more inquiries this week, some SSC are pushing [HR sheet] offers above €800 per tonne CPT to reflect higher HRC costs,” a buyer source in Italy told Fastmarkets.
Concerns over reduced import availability in the second half of the year due to new safeguards and Carbon Border Adjustment Mechanism (CBAM) effects were fuelling the upward sentiment.
New offers were scarce on both a DDP and a CFR basis, reflecting growing concerns about quota availability and CBAM costs for imports.
“Many sellers withdrew DDP-based [CBAM-accounted] HRC offers from the market, reassessing the calculation,” a second buyer in Italy said.
The first CBAM Certificate price will be published on April 7, the European Commission reported.
HRC offers from Turkey were reported at €565-570 per tonne CFR, including anti-dumping duty.
An Algerian supplier reportedly withdrew offers after securing some tonnages at €520 per tonne CFR earlier in March. Sources expected new offers to be “at least €30 per tonne higher.”
