The European steel hot-rolled coil market rose on Wednesday January 21 mainly because suppliers were pushing prices upward, having full order books at least till March, based to a large extent on limited import availability.
Earlier this week, leading European steelmaker ArcelorMittal increased its offer prices for flat steel across Europe.
The new HRC offer was €700 ($817) per tonne delivered, around €685 per tonne ex-works.
“The [ArcelorMittal] price increase came sooner than expected, and new offers are way above the real market level,” a buyer in Germany said. “We will not be able to digest this [new offer] quickly and pass it downstream.”
A buyer source pointed out that steel-service centres across the region were well stocked and not hungry for tonnages.
“The demand [for flat steel] remains stable [in Europe]. It’s neither great, nor terrible – flat since last year. So all these price rises are only due to Carbon Border Adjustment Mechanism [CBAM] and the safeguards effect on new imports,” a second buyer said.
One integrated supplier in Northern Europe said that it was also planning to increase offer prices for April-delivery HRC, but “in smaller steps,” setting a sales target at €650-660 per tonne ex-works.
At the same time, other sources said that one German mill was hoping to achieve at least €700 per tonne delivered for April volumes.
“New offers are absolutely out of touch with reality because buying is quiet, restocking is expected only in early February, and real demand is stable, so all rises are CBAM-driven,” another source on buyer side said.
A transaction was reported at €640-645 per tonne ex-works in the Benelux region area, while buyers’ estimates of achievable prices were around €630-640 per tonne ex-works on Wednesday.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €642.59 per tonne on January 21, up by €1.84 per tonne from €640.75 per tonne on January 20.
The index was also up by €1.34 per tonne week on week and by €18.84 per tonne month on month.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy, was calculated at €635.00 per tonne on Wednesday, increasing from €631.67 per tonne a day earlier.
The index was up by €5.00 per tonne week on week and by €21.25 per tonne month on month.
Offers were reported as high as €650 per tonne exw, while estimates of a workable price were at €630-650 per tonne exw depending on volume.
