European hot-rolled coil prices were little changed on Tuesday April 14. Some low-priced deals for the second quarter delivery coil came to light, although most suppliers indicated higher offers for the third quarter, Fastmarkets heard.
Trading remained thin across the European HRC market on Tuesday. Sources said the level of stock across the supply chain was quite high, which also constrained HRC price growth.
In Germany, deals were heard at €710-720 per tonne ex-works for minor tonnage deals from one supplier – for leftovers of June delivery HRC.
German mills were heard being largely sold out for the second quarter delivery HRC, with indications for July lead time heard at around €750 per tonne ex-works – which was not considered workable by buyers.
One integrated mills in the Benelux area reportedly had technical issues and had no HRC availability for June delivery. Price idea for July lead times was heard at €750 per tonne ex-works.
Workable price levels were voiced at €700-720 per tonne ex-works earlier this week.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €719.17 per tonne on April 14, down slightly from €720.00 per tonne on Monday April 13.
The index was also up by €0.92 per tonne week on week and by €5.60 per tonne month on month.
After the index was published, several sourced reported a large-tonnage deal (around 25,000 tonnes) done at €680 per tonne ex-works by one of the major
European mills in the Benelux area for the second quarter delivery coil.
Sources claimed difficulties with passing higher HRC prices downstream amid slow consumption.
For example, s235 grade of 4 mm HR sheet was still being traded at €770-780 per tonne ex-works in Germany, while sources estimated “adequate” spread between HRC and HR sheet to be at least €100-120 euro. Some sources said, however, that €800 per tonne CPT had being achieved in rare transactions.
“Secondary market can’t catch up with the pace of HRC prices rise. There is still a lot of cheap imports in the market,” a buyer in Germany said.
In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €698.75 per tonne ex-works on April 14, up by €1.11 per tonne from €697.64 per tonne on Monday
The index was up by €0.25 per tonne week on week and by €6.25 per tonne month on month.
Sources in Italy estimated achievable prices for HRC to be around €690-700 per tonne ex-works.
Trading was also limited in the region, with buyers holding sufficient stock and not in a hurry to replenish it.
In the secondary market, sources reported that for 4mm S235 grade hot-rolled (HR) sheet, €800 per tonne CPT was being gradually achieved in deals, with only sporadic deals heard at lower prices of €770-780 per tonne CPT.
Steel service center (SSC) sources indicated that, in order to reflect higher HRC prices, HR sheet prices would need to increase further to €820-850 per tonne CPT. However, the downstream market was slower to follow the upward trend amid strong end-user resistance to higher prices.
Meanwhile, new offers for imported coil have been limited recently amid soaring logistics costs and Carbon Border Adjustment Mechanism (CBAM) and new trade measures uncertainty.
On Tuesday, offers for Turkish coil were reported at €620-630 per tonne CFR to Italy, including anti-dumping duty.
From Algeria, offers were heard around €680 per tonne CFR to Spain, which was deemed unworkable by local buyers.
From India, offers were heard at €600 per tpnne CFR to Italy.
