European steel hot-rolled coil prices were largely unchanged on Tuesday April 21. High stocks and slow demand kept trading muted, and buyers have so far refused to accept much higher July offer prices, Fastmarkets heard.
In Northern Europe, integrated steelmakers had very little availability of June-delivery coil remaining, with estimates of workable prices for such material reported by buyers at €700-710 ($823-835) per tonne.
Two German mills were said to have no second-quarter delivery coil available.
One German supplier, which previously indicated offers for July-delivery HRC at €750-760 per tonne base delivered (around €735-745 per tonne ex-works), was heard offering such material at €730 per tonne base delivered (€715 per tonne ex-works) to some customers in Germany.
“Offers [of July-delivery HRC] heard at €750 [per tonne delivered] and higher are unrealistic,” a steel-service center (SSC) in Germany said. “Stock level is high, new imports are still coming, [and] there is no shortage of material. The big change will start after July 1, but even so, we do not have a room for big [HRC] price jumps.”
An integrated mill in the Benelux area had technical problems and therefore no availability of second-quarter delivery coil.
Also, several sources told Fastmarkets that discounted June-delivery coil sales, reported done by one major European mill in mid-April, were no longer taking place and mills were trying to support trade levels above €700 per tonne ex-works.
Trading, however, was limited in the spot market.
Market sources were waiting for more clarity regarding the distribution of import steel quotas between countries starting on July 1, when a new trade regime will come into effect.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €708.00 per tonne on Tuesday, up by €0.50 per tonne from €707.50 per tonne on April 20.
The index was down by €11.17 per tonne week on week and by €2.00 per tonne month on month.
In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €700.00 per tonne ex-works on April 21, stable day-on-day.
The index was up by €1.25 per tonne week on week and up by €4.37 per tonne month on month.
On Tuesday, market sources in Italy estimated achievable prices for HRC to be around €700 per tonne ex-works.
Local sellers maintained offers no lower than €700 per tonne ex-works for June delivery coil.
Trading was limited, with buyer sources reporting sufficient stock levels and no immediate need to purchase new coil.
In the secondary market for 4mm S235 grade hot-rolled (HR) sheet, prices of €800 per tonne CPT were achieved in deals in Italy, but also for limited volumes.
Steel imports into Europe remained limited, with market activity largely restricted due to the uncertainty around the new quotas.
On Tuesday, only offers for Algerian HRC were heard at €725 per tonne DDP, with Carbon Border Adjustment Mechanism (CBAM) costs included.
