The European market for steel hot-rolled coil remained slow on Monday June 15, mainly due to uncertainty caused by the imminent imposition of a new safeguarding regime. Some demand appears only from buyers who need to restock before the start of the summer holiday period, while stocks are predominantly high, sources told Fastmarkets.
The market is affected by “uncertainty about Carbon Border Adjustment Mechanism (CBAM), new quota, increasing energy costs due to [conflict between Iran and the US]; and we are close to summer holidays, so a big improvement is not likely before the summer,” one trader said.
In Northern Europe, offers of material scheduled for delivery in late July-September were heard within the range of €710-720 ($821.48-833.05) per tonne ex-works. Meanwhile, the workable level was estimated at €680-700 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €692.50 ($801.24) per tonne on June 15, up by €7.29 per tonne from €685.21 per tonne on June 12.
The index was slightly up by €0.50 per tonne week on week and up by €8.75 per tonne month on month.
In Italy, offers varied within the range of €685-695 per tonne ex-works, with indications of tradable levels within the range of €680-685 per tonne ex-works. For large tonnages, the workable level was reported at €675 per tonne ex-works.
“There was some activity because some buyers wanted to restock before the start of summer holidays — in southern Europe it normally starts earlier than in Northern [Europe],” another trader said. “People want to have some stocks for the future because an increase in prices is possible. Mills are pushing prices up.”
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €684.50 per tonne on June 15, down by €3.00 per tonne from €687.50 per tonne on June 12.
The index was up by €3.67 per tonne week on week and down by €0.33 per tonne month on month.
