European hot-rolled coil prices held steady on Tuesday March 24, with tight domestic and import supply supporting upbeat sentiment near term, sources told Fastmarkets.
European suppliers were largely sold out of coil for May delivery, with some also sold out of second-quarter volumes overall.
In Germany, one local supplier had no spot availability of HRC, sources said.
Other mills were heard offering coil for May-June delivery at €730 ($845) per tonne base delivered.
One leading European supplier was heard to have achieved €720-730 per tonne ex-works for limited HRC tonnages — more or less in line with target offers for May delivery — but was not in a rush to revise offers just yet, sources said.
A target offer from a Benelux supplier for June volumes was reported at €725 per tonne ex-works.
“Most likely the market won’t see any major changes before Easter [celebrated on April 5], but toward Tube and Wire Trade fair [held on April 13-17 in Dusseldorf, Germany] European mills might reconsider offers upward again – it’s a sellers’ market now,” a German buyer said.
Buyers’ estimates of achievable prices in Germany, the Benelux area and the Nordics were heard at €700-720 per tonne ex-works on Tuesday.
Buyers were pivoting to European steel lately as import risks mounted, driven by CBAM cost uncertainty, volatile freight, longer lead times amid Iran-US-Israel tensions, and looming safeguards.
As a result, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe was calculated at €716.00 per tonne on Tuesday, down slightly by €1.50 per tonne from €717.50 per tonne on Monday March 23.
The index was up by €5.87 per tonne week on week and by €34.12 per tonne month on month.
In the secondary market, meanwhile, steel-service centers (SSCs) were pushing HR sheet prices toward €800 per tonne CPT for 4mm S235 material, with deals already reported at that level. Sporadic sales around €760-770 per tonne CPT and lower, however, continued to weigh on price stability.
According to SSCs, prices needed to climb to €820-830 per tonne CPT to reflect higher HRC costs, but firm resistance from end users remained, leaving the downstream market lagging the HRC uptrend.
In Southern Europe, meanwhile, the market situation was similar.
Fastmarkets’ steel hot-rolled coil index, domestic, exw Italy was calculated at €697.50 per tonne on March 24, up slightly from €695.63 per tonne on March 23.
The index stable week on week and up by €31.25 per tonne month on month.
Local suppliers were heard offering HRC around €700-710 per tonne ex-works, with May lead times still said available.
Estimates of tradable prices varied between €690 per tonne and €700 per tonne ex-works on Tuesday, but buying was limited.
“Everyone is cautious with new bookings, purchasing only what’s necessary. HRC increases don’t catch up with derivatives prices yet,” a buyer in Italy said.
Import prices, meanwhile, have increased over the past couple of weeks, driven by logistical complexities and soaring freight rates because of the conflict in the Middle East.
New import offers were limited, with buyer considering North African and Turkish suppliers as relatively “reliable” origins, while cargoes from Asia were mostly offered on FOB basis since suppliers were trying to avoid exposure to volatile transport costs.
An Algerian mill was heard to have sold cargoes to Europe recently at around $715 per tonne FOB and was said to be nearly sold out of second-quarter cargoes.
Offers from Turkish mills were heard around €640-655 per tonne CFR, including the anti-dumping duty.
