The European hot-rolled steel market remained calm on Tuesday, December 16, amid the suspension of trading and impending policy changes. Some suppliers plan to raise prices for supplies in the first quarter, Fastmarkets reported.
It became known that the leading European steel producer ArcelorMittal largely sold off contracts for the supply of HRC in February. Fastmarkets reported on Tuesday that for March shipments, the company has increased its HRC offers by 20 euros per tonne to 670 euros per tonne with base delivery (or from the factory), depending on the region.
The Benelux steel mill announced plans to supply the coils in March at a price of 650 euros per ton from the plant.
Price offers from buyers from Northern Europe were at the level of 610-630 euros per ton from the factory, but recently trading has been weak.
"HRC prices are rising step by step, however, only because of the uncertainty of new imports due to CBAM and new guarantees," said a German buyer.
"Prices[for HRC]are very volatile, there is no demand support; inventory replenishment will be minimal," said the second buyer.
As a result, the daily price index for Fastmarkets hot-rolled steel for sale in Northern Europe on Tuesday was 623.54 euros per ton, which is 1.87 euros higher than on Monday, December 15, at 621.67 euros per ton.
.The indicator increased by 0.73 euros per ton week-on-week and by 10.62 euros per ton on a monthly basis.
Meanwhile, in Italy, Fastmarkets' daily domestic hot rolled steel price index, exw in Italy, was 613.33 euros per tonne on Tuesday, 1.66 euros higher than on Monday, compared with 611.67 euros per tonne.
The index decreased by 0.42 euros per ton week-on-week, but rose by 12.08 euros per ton month-on-month.
According to sources, there was practically no bidding in Italy. Similar to the situation in Northern Europe, local distributors had sufficient stocks, while local factories had a good order book.
Proposals for the supply of HRC in February at a price of 610-640 euros per ton from the factory, depending on the supplier, were heard.
Buyers estimated the achievable prices at 600-620 euros per ton from the factory. Although one of the sources noted that "it was no longer possible to buy HRC for less than 610 euros per ton at a factory in Italy."
Meanwhile, market participants said that interest in new import orders remains subdued due to the upcoming EU CBAM requirements, the transition to a new trade regime, and uncertainty about the remaining quota volumes available under the current safeguard system.
"The purchase of imported goods based on CFR is no longer possible. The only acceptable option is DDP-based booking, at least partially.
