European manufacturers of hot-rolled coils gradually increased their prices for production volumes in the first quarter. On Wednesday, October 22, Fastmarkets reported that buyers are doubtful about the size and sustainability of the price increase, which can be accepted in the absence of real demand.
Factories in Germany and Benelux expected to receive 620-630 euros per ton of finished products for delivery in January.
Buyers generally agreed that with the introduction of the Carbon Boundary Adjustment Mechanism (CBAM) and new trade measures, uncertainty is expected to limit new imports or "bring import prices closer to European prices." Thus, the internal prices of the HRC should increase.
"We expect growth for the first quarter of the shipping period, but the question is how much and for how long it will last, as demand from end users is not getting up," a buyer in Germany said.
"Our customers are calm; we haven't ordered much bulk for the first quarter yet," Fastmarkets told a steel service center in Germany.
"There are no serious volumes visited in January; buyers are waiting," added the second steel service center.
Buyers' price ideas for January delivery coils do not exceed €610 per ton on a free-of-charge basis so far, although December delivery coils have been ordered in amounts no higher than €580-590 per ton of Ex-work.
The source supplier estimated the achievable prices for January coils at €610-620 per ton of Ex-work.
As a result, Fastmarkets daily rolled the hot-rolled domestic index, Northern European pickup was €597.14 per ton on Wednesday, up by €2.14 per ton from €595.00 per ton on Tuesday.
The index increased by €8.14 per tonne week-on-week and by €19.64 per tonne compared to the previous month.
In Italy, offers from one local supplier ranged from €630 per tonne delivered (€610-615 per tonne on a free-of-charge basis).
Another seller is aiming to approach 600 euros per ton delivered, and the price of the customer's ideas is actionable at various levels.
Some of them are estimated at €570-580 per ton of Ex-work, adding that the levels are higher, which is not achievable at the moment, due to low demand and high availability of HRC on the market, both imported and domestic.
Some interested parties towards buy gave calculations that were closer to Mills' target levels — 600-610 euros per ton delivered.
"Mixed feelings in the market about new price increases; no one has made much purchase in January yet," a local distributor said.
As a result, Fastmarkets daily rolls the hot-rolled domestic index, Italy pickup is calculated at €588.33 per ton on Wednesday, up by €2.91 per ton from €585.42 per ton on Tuesday.
The Italian index rose by €11.66 per tonne week on week, but that by €38.33 per tonne
