The European domestic market for steel hot-rolled coil (HRC) was largely quiet on Monday August 18 with many market participants still on holiday.
Those who were present reported muted trading with most discussions focused on the future of protection measures, including the EU’s Carbon Border Adjustment Mechanism (CBAM) and various options for the evolution of safeguard measures.
A trading source said that customers preferred to book material produced in Europe despite the price being in general €20-30 ($23-35) per tonne higher compared with imports, to avoid any risks connected with uncertainty over the future of import trading.
He reported recent deals from several key producers in Northern Europe being done within the range of €570-580 ($665-677) per tonne ex-works, and a supplier from the Benelux area selling for less than €570 per tonne ex-works.
Offers in the region still varied within the range of €590-610 per tonne ex-works, according to market sources, with the upper end said to be unrealistic and the lower end not yet achieved in deals.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €575.21 ($671.10) per tonne on August 18, up by €6.04 per tonne from €569.17 per tonne on August 15.
The Italian market was said to be still in a “deep sleep” due to traditional August holidays and maintenance periods.
The latest workable prices achieved in early August before summer break, were around €540 per tonne ex-works.
A mill source said that current target prices for September and October sales were €560-570 per tonne ex-works, but this has not yet been fixed in transactions and was more a target for the moment.
Fastmarkets’ daily steel HRC index, domestic, exw Italy, was €537.50 per tonne on August 18, stable from Friday.
