Demand for imports of steel hot-rolled coil has weakened further in the European market following the introduction of new regulations, with the focus now shifting toward domestic production, Fastmarkets heard on Wednesday February 18.
The introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) and new trade policies, which will replace current safeguard measures, was affecting buyers’ appetite for imported coils.
According to a market source, imports of flat steel products have become “too risky” due to uncertainty about the costs of CBAM and other regulations, improving the situation for local producers, although demand levels remained low.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Northern Europe, was €490-530 ($578-625) per tonne on Wednesday, widening downward from €500-530 per tonne the previous week.
The lower end of the assessment matched a deal from India heard at €490 per tonne CFR, while the higher end of the assessment was estimated on offers from Turkey heard around €530 per tonne CFR.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Southern Europe, was €475-530 per tonne on Wednesday, also widening downward from €500-530 per tonne the previous week.
The lower end of the assessment related to an offer from Indonesia reported at €475 per tonne CFR, with the upper end to an offer from Turkey heard at €530 per tonne CFR.
A deal from India was also heard at €490 per tonne CFR.
Meanwhile, European buyers have focused more on DDP-based bookings to overcome some of the challenges of CBAM-related cost hurdles.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, ddp Northern Europe, was €610-640 per tonne on Wednesday, narrowing upward from €600-640 per tonne the previous week.
The lower end of the assessment matche an offer from India heard at €610 per tonne DDP, while an offer from Turkey was heard at €630-640 per tonne DDP.
Meanwhile, Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, ddp Southern Europe, was €610-650 per tonne on Wednesday, rising from €600-630 per tonne in the previous assessment.
The increase was supported by a deal from Turkey for 20,000 tonnes of HRC heard around €630-650 per tonne DDP. Additional Turkish offers were heard around €610-640 per tonne DDP.
