Domestic steel hot-rolled coil (HRC) prices softened slightly in Northern Europe and Italy due to limited market activity and uncertainty over upcoming EU safeguard measures, sources told Fastmarkets on Monday June 29.
In Northern Europe, trading activity has stalled due to uncertainty surrounding the new country-specific import quotas, which have yet to be announced by the European Commission despite the measures being due to take effect on July 1.
Sources said there was sufficient material available in the market, but buyers were awaiting further details on the quotas and expected greater clarity by the end of the week.
“I expect a very calm summer, which is actually good, because there is enough material available now,” a buyer said on Monday, also providing an indication of workable levels at €675-685 ($768-780) per tonne ex-works.
A second buyer reported an indication at €660-675 per tonne ex-works on June 29, which was assigned zero tonnage due to a lack of supplier interest at the lower end of the range.
A third buyer said larger-volume orders, above 10,000 tonnes, might receive a further €5-10 per tonne discount, but declined to consider €660 per tonne ex-works a representative market level at present, and had not heard any deals done at this price.
Other sources could not indicate workable levels for HRC because of the limited trading activity.
Due to a lack of fresh input, price points received on Friday June 26 were carried over to June 29. On Friday, an indication of workable levels was reported at €680-685 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €681.25 per tonne on June 29, down by €1.25 per tonne from €682.50 per tonne on June 26.
The index was unchanged week on week, but down by €9.67 per tonne month on month.
In Italy, market activity was also quiet, driven by uncertainty over the new safeguard measures and the approaching summer period, normally slowing demand.
Sources said indications of workable levels were in the range of €655-675 per tonne ex-works, but they could not provide any fresh trading data.
One supplier reported HRC offers for September delivery at €690 per tonne ex-works on Monday, which were assigned zero tonnage due to longer delivery period, exceeding Fastmarkets’ six-week methodology window.
“The offer [at €690 per tonne ex-works] is quite ambitious. Maybe it will be completed, but this is not the normal number now,” a buyer said on Monday regarding the material offered for September shipment.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €666.25 per tonne on June 29, down by €1.88 per tonne from €668.13 per tonne on June 26.
The index was down by €8.13 per tonne week on week and by €5.42 per tonne month on month.
Meanwhile, the Italian steel trade association Assofermet published a statement on Friday criticizing the European Commission for the delay in the announcement of the new import quotas ahead of July 1, saying it was directly affecting EU steel companies.
“Negotiations with partner countries within the framework of free trade agreements are still ongoing with an incomprehensible and unjustifiable delay,” the organization said, adding that the consequence was clear: “Less than a week before the new regime starts, no one can know for sure how the quota system will actually work from day one.”
