The escalation of the conflict between Iran and the US almost immediately resulted in higher energy costs and increased freight and insurance rates, and led to partial re-routing of marine traffic from the Suez Canal to the Cape of Good Hope, which extended cargo delivery times by at least two weeks.
This had an additional negative effect on imports, which were already hampered by the introduction of the Carbon Border Adjustment Mechanism (CBAM) earlier this year.
Sources in Northern Europe said tradeable levels for local hot-rolled coil had moved to €700 ($812.35) per tonne ex-works and above, with mainly May-delivery material now available.
Earlier this week Fastmarkets heard about several cargoes changing hands within the range of €700-710 per tonne ex-works.
A few sources, however, still considered €685 per tonne ex-works to be tradeable.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe was assessed at €700.00 per tonne on March 6, down slightly by €0.63 per tonne from €700.63 per tonne on March 5.
The index was up by €13.93 per tonne week on week and by €43.75 per tonne month on month.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was €680.83 per tonne on March 6, up by €0.83 per tonne from €680.00 per tonne on March 5.
The index was also up by €10.20 per tonne week on week and by €32.91 per tonne month on month.
Suppliers said April-delivery cargoes were unavailable and that May volumes were being gradually offered, with €700 per tonne indicated as the desired level. Estimates of workable prices remained around €680 per tonne ex-works.
Central European domestic steel hot-rolled coil prices also moved upward amid mounting concerns linked to the conflict in the Middle East, Fastmarkets heard.
“With the situation in Iran it is difficult to predict what will happen and whether this will lead to tensions in the market,” a source said.
Fastmarkets’ weekly price assessment for steel hot-rolled coil domestic, exw Central Europe was €670-700 per tonne on Wednesday, rising from €665-690 per tonne in the previous assessment period.
The increase was supported by higher offers heard at €685-700 per tonne ex-works, while transactions were heard at €670-690 per tonne ex-works.
