European producers of steel hot-rolled coil have increased their offer prices for third-quarter deliveries but buyers have stepped back to digest the higher prices, Fastmarkets heard on Tuesday April 7.
Trading activity remained slow across the European HRC markets after the Easter break.
Major European suppliers were largely sold out for second-quarter delivery HRC, with only limited availability from some sellers.
Meanwhile, offers of July-delivery coil had already been reported at much higher prices before Easter.
In Germany and the Benelux area, integrated mills were hoping to achieve €750-760 ($867-879) per tonne ex-works, Fastmarkets heard.
No sales were reported at the new prices, with buyers taking a wait-and-see approach for now.
“July is too far away and demand is not supporting such price jumps. European mills rely too much on regulations [such as safeguards and the Carbon Border Adjustment Mechanism (CBAM)] to support the uptrend,” a distributor in northern Europe said.
“Stocks are still too high. We do not need material for July,” a steel-service centre (SSC) in Germany said.
In contrast, in the second half of March, deals for June-delivery coil in Northern Europe were heard at €700-730 per tonne ex-works.
On April 7, buyers’ estimates of achievable prices in the region were reported at €700-730 per tonne ex-works.
As a result, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €718.25 per tonne on April 7, down by €0.51 per tonne from €718.76 per tonne on April 2.
Fastmarkets’ European HRC indices were not published on April 3 and April 6 because of the Good Friday and Easter Monday holidays in the UK.
The Northern Europe index was, however, up by €6.75 per tonne week on week and up by €18.25 per tonne month on month.
In the secondary market, trade sources reported that SSCs were gradually pushing prices toward €820-830 per tonne CPT for 4mm S235 grade hot-rolled (HR) sheet, with transactions already concluded at €800 per tonne CPT. But sporadic sales were still being reported around €750-770 per tonne CPT and even lower, continuing to disrupt price stability.
“Some SSCs keep selling HR sheet even at €740 per tonne CPT, using old feedstock,” a buyer in Germany said.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy, was calculated at €698.75 per tonne on Tuesday, unchanged since April 2.
But the index was up by €3.75 per tonne week on week and up by €17.92 per tonne month on month.
The Italian market was also quiet, with no major trading reported on Tuesday.
Offers of June-delivery HRC from local sellers were heard at €700-705 per tonne ex-works on Tuesday, while buyers’ estimates of achievable prices were heard at €690-700 per tonne ex-works.
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 occasional deals heard at lower prices of €760-780 per tonne CPT.
Meanwhile, the market for imported coil was totally quiet on Tuesday, with CBAM, safeguard measures and the conflict in the Middle East significantly limiting “safe” import options for European buyers.
“Freight costs are increasing, insurance costs are dramatically high, CBAM costs are uncertain, [country-specific] quotas for new safeguards to start on July 1 are unknown – it’s simply gambling [to deal with imports],” a buyer in Europe said.
HRC offers from Turkey to Italy were heard at €620-630 per tonne CFR on Tuesday and at €630-640 per tonne CFR from Algeria.
