The Iberian hot rolled coil market saw prices rise in the last full week of March. Demand, however, remains weak amid cautious buyer behaviour, market sources tell Kallanish.
“Rising prices are curbing consumption, and most retailers anticipate further risks to demand due to the increased costs resulting from geopolitical tensions,” says one seller. “It is difficult to predict when the market will recover.”
Apart from the effects of the US-Israel-Iran war, customers are also concerned about the impact of the Carbon Border Adjustment Mechanism (CBAM) on their HRC bookings since January.
“The implementation of CBAM makes import prices uncompetitive compared to those in Spain, which are already higher. This, combined with rising transport and energy costs, is significantly discouraging consumer interest at the moment,” a source explains.
Spanish steel distributors say that HRC prices for April deliveries will remain high, confirming that local steelmakers are resisting making concessions.
Spanish HRC prices currently stand at €700-710/tonne ($807.98-819.50) ex-works. Distributors’ levels surpass €730/t delivered.
