Prices for hot-rolled steel in Europe rose on April 3, as sources discussed the impact of the latest tariffs in the United States and the main factors affecting the growth of supply in the market.
. Despite the fact that spot liquidity remained low, on April 3, the attention of market participants continued to be attracted by more profitable offers at mills in response to the latest round of tariff increases in the United States. Opinions on the scale of the consequences were mixed.
In response to the higher offers, a source at the plant, who sees the market approaching 650 euros per tonne at the former Ruhr plant, said: "We have heard that some other participants have increased their offers by 10 euros, but in fact no one is paying much more, 700 euros per ton seems finally unattainable for now."
. The distributor, who discussed the latest tariffs in the United States, shared his expectations of a minimal impact on prices, but rather a further increase in uncertainty among buyers and traders in the face of an unstable US dollar exchange rate. "I don't think this will lead to devastating consequences, and the EU steel industry will take it lightly — perhaps we will see a more emotional reaction or, at most, an impact on specialized steel flows," the distributor said.
In response to higher offers from mills in the EU, the same distributor reported: "700 euros per ton in 2020. This is not feasible yet, but the market is striving for a more balanced industry demand and production as production capacity decreases."
Other market participants indicated hesitation in buying imported goods due to the risk of quotas being imposed at the moment, amid expectations that at lower price limits, updated quarterly quotas would be closed much earlier than in previous quarters, despite limited demand.
This is expected to provide additional support to domestic producers, as several intermediate buyers suggest that in the second half of the year, HRC prices in Northern Europe may reach 700 euros per ton and above.
The Platts agency, part of S&P Global Commodity Insights, estimated raw material prices in Northwestern Europe on April 3 at 645 euros per ton excluding shipments to the Ruhr, and in Southern Europe at 630 euros per ton excluding shipments to Italy, which is 5 euros more than on April 2.. euro. 3p3p347. 3p3p338. Platts estimated the HRC CIF in Antwerp at 550 euros per tonne, and the HRC in Southern Europe at 545 euros per tonne CIF in Italy, which is stable compared to April 2.
