Domestic prices for steel hot-rolled coil (HRC) increased in both Northern Europe and Italy, driven by limited availability in the market and a resumption of trading activity after the end of the summer slowdown period, sources told Fastmarkets on Wednesday September 2.
In Northern Europe, indications and offers for workable prices were reported within the range of €740-760 ($858-881) per tonne ex-works on Wednesday, in line with the latest transactions heard on Tuesday.
Higher offers from mills were quoted at €770-790 per tonne ex-works, but these levels were still considered unworkable, sources said.
HRC producers increased their offers at the beginning of September, which was also driven by the limited availability of material in the region due to the partial refurbishment and maintenance work at thyssenkrupp’s blast furnace No. 2 in Duisburg, as the company announced on September 1.
However, no full production stop at the mill’s site was expected, a trade source said, adding that the producer was still offering HRC but at higher prices.
Another trade source said that customers were hesitating to buy imported material due to the uncertainty over the additional duties under the steel safeguard system.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €755 per tonne on September 2, up by €6.67 per tonne from €748.33 per tonne on September 1.
The index was up by €21.25 per tonne week on week and €43.75 per tonne month on month.
In Italy, market activity resumed slightly on Wednesday, with sources quoting higher levels compared to August prices. This was widely expected, as most mills were out of the market during the summer holiday period.
Latest transactions were heard at €720 per tonne ex-works, with a trade source saying this was “the minimum price,” while customers were heard asking for material at €710 per tonne ex-works.
Indications for workable prices were reported in the range of €710-730 per tonne ex-works. Offers reached €730 and €740-745 per tonne ex-works, but the higher levels were considered unworkable, according to sources.
“Market is waking up slowly, opposite of my idea. They [prices] are still not jumping up strongly,” a second trade source said.
No news about a restart date was heard for Metinvest’s Ferriera Valsider mill, which declared a force majeure in late August due to an engine issue. However, a source at the company said it was not offering HRC yet due to “limited allocation for the fourth quarter of the year.”
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €721.67 per tonne on September 2, up by €9.17 per tonne from €712.50 per tonne on September 1.
The index was up by €2.09 per tonne week on week and €15.42 per tonne month on month.
