The downward trend in Romania’s flat steel market has extended into another week, as persistently weak demand and increasingly aggressive pricing from some larger traders continue to drag workable levels lower. With August business already at a seasonal low, buyers are showing little urgency to purchase amid sufficient stocks, tight liquidity and weaker activity in the construction sector. In this environment, larger sellers are cutting prices to stimulate sales, forcing smaller and medium-sized traders to either follow the downward trend or offer wider discounts despite growing pressure on their margins.
Hot rolled sheet prices have consequently fallen to around €765-770/mt ex-warehouse, compared to €780-790/mt ex-warehouse last week. Some larger traders are still heard at around €745-750/mt ex-warehouse, while smaller and medium-sized sellers generally try to stay closer to the upper end of the market and negotiate only for serious inquiries. Discounts of around 5-8 percent remain possible depending on tonnage and payment terms. Cold rolled sheet prices have also softened to around €870-880/mt ex-warehouse, down from €880-890/mt ex-warehouse last week. Even at the lower levels, however, buying remains scarce and most transactions continue to be limited to immediate requirements.
There has, meanwhile, been no notable progress regarding the sale of Liberty Galati, with no new buyer or concrete development heard in the process. Nevertheless, concerns surrounding the group’s financial position have deepened after Liberty Services Center Galati entered bankruptcy proceedings amid significant outstanding debts. Although the company is separate from Liberty Galati itself, the development has further worsened sentiment around the group’s Romanian operations and added to the already uncertain outlook for the producer.
Import activity has also remained very limited, with Romanian buyers seeing little reason to enter the market while stocks remain sufficient and much of Europe is still affected by the August holiday period. Market participants expect discussions to gradually resume in September, as suppliers return with fresh quotations and buyers get a clearer indication of the post-summer price direction. Ukrainian offers have remained unchanged at around €790-800/mt CPT Romania for hot rolled sheet and €880-890/mt CPT for cold rolled sheet, levels which are still considered too high to attract much interest. Meanwhile, Turkish HRC offers are heard at around $570-585/mt FOB, with freight to Romania estimated at $25-30/mt, resulting in an indicative delivered level of approximately €515-530/mt CFR Romania, compared to around €520-530/mt CFR last week. Despite the competitive level, quota limitations and uncertainty over CBAM-related costs continue to restrict Romanian buyers’ interest in Turkish material.
