Prices for rolled materials at factories in Northwestern Europe have remained virtually unchanged in recent weeks, despite the availability of competitive imports on the market.
According to one German manager, while prices for hot-rolled coils in domestic factories are around 650 euros per ton (US$729 per ton), prices for materials supplied from abroad are 50 euros per ton lower than in Antwerp, according to cif terms.
Given the additional transportation costs, this material does not make much sense to German buyers, but it may be useful to those who are located near the Belgian/Dutch coast with shorter transport routes, he suggests.
One French trader rejects this option by adding a duty that currently has to be taken into account, which means that imports of HRC typically exceed 600 euros per ton, he says.
"The difference with domestic prices in Europe is really big. minimal," he tells Kallanish. He says he still receives frequent inquiries from clients, "but they're just testing the waters," and there aren't many real deals.
He believes that 80% of all steel is purchased from domestic plants, and only 20% of imports is divided into sales from existing stocks and new orders.
He notes that the price difference for hot-dip galvanized coils is even smaller. The cost of importing this material ranges from 700 to 730 euros per ton per day, which means that, taking into account the duty, prices basically correspond to prices set at the manufacturing plant in the EU.
Within the EU, Italian offers are uncompetitive compared to prices in the north.
"We also buy there," says one customer from Southern Germany. "But the cost of transportation is high, and as a result, the difference with prices in the north will be insignificant."
Christian Kel, Germany
kallanish.com
