European prices for steel hot-rolled coil remained steady in the week to Wednesday January 14, with reports of low trading activity, while demand was also subdued, Fastmarkets heard.
Market participants remained sufficiently well stocked and were not looking to place big orders, according to trade sources, with most still waiting to assess the effects on imports of the EU’s Carbon Border Adjustment Mechanism (CBAM).
According to a Northern European source, several market participants that were “very much import-oriented” in the past were now refraining from taking additional risks linked with imports, instead focusing on domestic producers.
The CBAM, which came into full effect only on January 1, was expected to affect import flows, while also supporting domestic producers.
In Northern Europe, estimates of workable prices were heard around €630-650 ($741-765) per tonne ex-works, with no new bookings heard during the day.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €641.25 per tonne on January 14, up by €2.92 per tonne from €638.33 per tonne on January 13.
The index was up by €10.25 per tonne week on week and by €19.58 per tonne month on month.
There were no major changes in the Italian market, either.
According to a local market source, demand was still weak, although the source said that prices were “destined to increase” when import offers become too risky with the implementation of the new trade rules.
Estimates of workable prices were heard within the range of €620-630 per tonne ex-works, while offers for March delivery were heard around €630-650 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was €630.00 per tonne on Wednesday, up by €0.73 per tonne day on day.
The index was up by €6.00 per tonne week on week and by €18.75 per tonne month on month.
