The reduction in imports was due to the effects of the EU’s new Carbon Border Adjustment Mechanism (CBAM) and expectations of a new trade regime.
Across Northern Europe, more and more sources were reporting improved buying activity in the spot market during the current week.
“Even steel-service centers [SSCs] with reasonable stocks are looking to book [HRC] now, because waiting a couple more weeks would mean paying a higher price,” a mill source in the region told Fastmarkets.
Transactions in Germany and the Benelux area were reported around €685 ($809) per tonne ex-works on Thursday.
Estimates of achievable prices were reported at €670-690 per tonne ex-works for April-May delivery coil, depending on tonnage.
At the same time, offers from integrated mills in the region were heard at €700-720 per tonne delivered (around €680-705 per tonne ex-works), with limited room for discounts. Most sellers claimed to be largely sold out of April-delivery coil.
Italy-origin coil was offered to Germany at €720-730 per tonne delivered, with some April-delivery tonnages said to be still available. But market sources said that Italian suppliers have preferred to focus on domestic sales more recently.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €685.73 per tonne on February 26, down just by €0.10 per tonne from €685.83 per tonne on February 25.
The index was up by €14.23 per tonne week on week and by €39.48 per tonne month on month.
Market sources said, however, that in the secondary market, prices for 4mm HR sheet were still lagging, with some SSCs selling aggressively at €730-740 per tonne CPT, using old HRC feedstock for production, purchased at lower prices. New offers, however, were heard at prices closer to €800 per tonne CPT, to reflect higher feedstock costs, Fastmarkets heard.
Meanwhile, in Southern Europe, Fastmarkets’ corresponding daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €670.63 per tonne on Thursday, up by €4.80 from €665.83 per tonne on Wednesday.
The index was up by €8.13 per tonne week on week and by €33.13 per tonne month on month.
In Italy, trade sources reported offers of May-delivery HRC at €700-720 per tonne delivered (around €685-705 per tonne ex-works) from integrated suppliers and re-rollers. But workable prices were still reported at €680-690 per tonne delivered (around €665-675 per tonne ex-works).
One buyer suggested €680-685 per tonne ex-works could be achieved for minor tonnages.
While mills were officially holding firm on offers for May lead times, market participants believed that April availability was still possible, with greater flexibility on pricing for earlier delivery.
Meanwhile, in the secondary market, prices for 4mm HR sheet were edging upward, albeit slowly. Official SSC offer prices in Italy were reported at €800 per tonne CPT for S235 grade, although transaction levels were still lagging behind, being negotiated on a case-by-case basis. Market sources indicated achievable prices as low as €750-760 per tonne CPT.
On the import side, options were still limited due to CBAM and a new safeguards regime.
The bulk of second-quarter delivery volumes from Turkey, Saudi Arabia and North Africa were reported to have already been booked by traders, who were now hoping to resell material at €640-650 per tonne DDP or more, CBAM costs included, to mid-sized customers.
Offers from Turkey for end-May-early June delivery HRC were heard around €555-580 per tonne CFR. Several trade sources said that a new round of negotiations for Turkish coil was under way in Europe.
In early February Turkey sold large cargoes of HRC to Europe at around €515-520 per tonne CFR
