European for steel hot-rolled coil (HRC) were largely unchanged on Thursday April 23 amid a standstill in trading. Buyers were postponing purchases, awaiting more clarity on the new EU trade regime and especially the country-specific import-quota allowances, trade sources told Fastmarkets.
Steelmakers in the region had very little availability of second-quarter delivery coil, but higher prices for July lead times, indicated earlier in April, have failed to be seen in firm offers so far.
“Mills are keeping quiet. Apparently, they are waiting for a safeguards update as well. There are rumors and indications, but practically no firm offers for July,” a buyer in Germany said.
“We saw some low-priced deals for HRC by some sellers in mid April. Mills were filling gaps in order books, but now it seems to be over,” a second buyer said.
Two German mills were reported as not active in the spot market because they had a aignificant backlog of orders.
Fastmarkets reported earlier this week that one of them offered material at €730 ($853) per tonne base delivered (€715 per tonne ex-works) to some customers in Germany for July delivery.
Italy-origin coil with June lead times was offered to Germany at €730-750 per tonne delivered.
Asupplier in the Benelux area, who had to shut down its direct sheet plant (DSP) and casting roller plant due to environmental issues earlier in April, was expected to resume operations next week, several sources said.
A leading European steelmaker was yet to give firm offers for July-delivery HRC. Market sources said that the supplier managed to close gaps in its order books for second-quarter delivery coil recently.
Estimates of workable prices for HRC in Northern Europe were reported by buyers and sellers at €700-720 per tonne on Thursday.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was assessed at €708.75 per tonne on April 23, up by €0.75 per tonne from €708.00 per tonne on April 22.
The index was down by €0.73 per tonne week on week and by €8.75 per tonne month on month.
At the same time, market sources agreed that, despite the current standstill, a reversal of the price trend was unlikely.
“The new trade regime and 50% imports cut are not temporary or short term – starting in July, they will have real, long-lasting effects on the market. There is no room for sharp [HRC] price jumps, yes, but now there is room for a decline,” a distributor in the Benelux area said.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €700.00 per tonne ex-works on April 23, down from €701.24 per tonne ex-works on April 22.
The index was, however, up by €1.25 per tonne week on week and up by €4.37 per tonne month on month.
Market ources in Italy estimated achievable prices for HRC to be around €700 per tonne ex-works, while local sellers maintained offers no lower than €700 per tonne ex-works.
In the secondary market, sources reported transactions for 4mm S235 grade hot-rolled (HR) sheet consolidating at €800 per tonne CPT in Italy.
“Sometimes it’s €10-20 per tonne lower, sometimes a bit higher – but on average €800 [per tonne CPT] is a consensus,” a steel-service center in Italy said.
Trading in the nation was also very quiet, with both buyers and sellers waiting for safeguard updates.
“Knowing the country-specific quota distribution is crucial for understanding the future import structure,” a buyer source said. “Apart from quotas, real demand is the key concern – there is no improvement in that.”
Meanwhile, because of the lack of clarity on country-specific quotas and on the Carbon Border Adjustment Mechanism (CBAM) costs for imports, buyers were showing little interest in overseas material, at least for HRC.
From Turkey, offers were reported at €625-635 per tonne CFR, including anti-dumping duty, but excluding CBAM costs.
Offers from India were heard at €585 per tonne CFR. Market sources said that Indian mills were able to offer shipment in mid-May and guaranteed arrival before July.
