Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €622.81 ($725.23) per tonne on December 9, up by €0.56 per tonne from €622.25 per tonne on December 8.
The index was up by €4.48 per tonne week on week and by €16.14 per tonne month on month.
Offers from integrated mills in the region continued to be significantly higher, at €620-650 per tonne ex-works.
Market sources noted that some suppliers showed some flexibility in sales, with deal prices for January-delivery HRC around €610-630 per tonne ex-works in Germany and the Benelux area.
But suppliers were mostly sold out for January tonnages and not very active in the spot market recently.
“[A leading European supplier] was selling HRC below target offers in November to fill order books but, now that they are comfortably booked, there is practically no flexibility from their current offer of €650 per tonne delivered,” a buyer in Germany said.
Market sources said that trading volumes of HRC remained limited and that business was mainly “hand to mouth” in the region.
“Stocks are high at buyers, but order bools are also quite good at mills, so there is no rush from either side,” a second buyer said. “Mills are negotiating long-term contracts with the automotive industry now – that’s the priority.”
In Italy, meanwhile only limited volumes were transacted recently, with local suppliers aiming for €620-630 per tonne ex-works for January and February delivery HRC, with “only limited flexibility in pricing,” market sources said.
“[A local supplier] was accepting €590-600 per tonne ex-works in November, but since the beginning of December it pushed offers to €620 [per tonne ex-works] with very limited opportunity for discounts,” a buyer in Italy said.
Buyers were estimating achievable prices at €600-620 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €613.75 per tonne on Tuesday, up by €2.50 per tonne from €611.25 per tonne on Monday.
The index was up by €10.62 per tonne week on week and by €17.75 per tonne month on month.
Appetite for new imports was limited by the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM) and new trade regime, as well as caution over quotas available under existing safeguard measures, market sources said.
A deal for Indonesian HRC was reported at €490 per tonne CFR earlier in December.
A transaction for India-origin coil was heard at $570 per tonne CFR in late November.
Asian suppliers could offer March-April delivery, market sources said, adding that there were two large import coil buyers in Italy and “they will keep booking [HRC] from imports despite regulations.”
At the same time, smaller market participants were cautious with new bookings or preferred to book imports on a DDP basis “to at least partially account for CBAM costs,” Fastmarkets heard.
Indonesian coil for April arrival was on offer at €595-600 per tonne DDP into Antwerp.
Turkish coil with March arrival was offered at €600-620 per tonne DDP in Italy.
